QUESTION 21 Gold Company has provided you with the following information before any year-end adjustments: What is the estimate bad debt expense using the percentage of credit sales method? Net credit sales are $120,000 Historical percentage of credit losses is 2%. Allowance for doubtful accounts has a credit balance of $300 Accounts receivables ending balance is $47,000 a. $2,100 b. $2,700 c. $940 O d. $2,400 QUESTION 22 Which of the following correctly describes the following journal entry? Debit-Cash XXXXX Debit-Sales discounts - Xxxxx Credit- Accounts receivable - XXXXX The gross profit does not change Net income decreases Current assets increase Net sales increases