Question 15 The allowance method of estimating uncollectible accounts is widely-used because it follows this principle: Revenue Recognition Cost Going concern Matching Question 16 Theon Company has $4,000,000 of sales and $200,000 of accounts receivable for the year. The company estimates 2% of it accounts receivable will become uncollectible. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustmer record uncollectible accounts for the period will require a: Debit to Bad Debts Expense for $4,000 Credit to Allowance for Doubtful Accounts for $4,000 Debit to Bad Debts Expense for $3,100 Debit to Allowance for Doubtful Accounts for $3,100