QUESTION 3 Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct? a. Bad debt expense is estimated to be $5,550. b. Bad debt expense is estimated to be $11,100. . c. Uncollectible accounts are estimated to be $55,500. d. Uncollectible accounts are estimated to be $111,000 QUESTION 4 On the first day of the fiscal year, Hawthorne Company obtained an $88,000, 7-year, 5% installment note from Sea Side Bank. The note requires annual payments of 515,208, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $4,400 and principal repayment of $10,808. The journal entry Hawthome would record to make the first annual payment due on the note would include a a debit to notes payable for $15,208 b.credit to notes payable for $10,808 c. debit to interest expense for $4,400 d. debit to cash for $15,208