Question 34 (5 points) Arc, Inc. has $600,000 in accounts receivable at the end of 2019 and the allowance for bad debts before adjustments at the end of 2019 has a credit balance of $13,000. If Arc estimates that the allowance for bad debts should be 7% of accounts receivable, which of the following is true? The needed adjusting entry will involve a debit to the allowance of $42,000 The needed adjusting entry will decrease net income by $29,000 The needed adjusting entry will increase assets by $29.000 The needed adjusting entry will involve a debit to bad debt expense for $42.000 Question 35 (5 points) The following purchases of widgets by Happy Company took place during the 1st Quarter of 2019: Date Units Costume 01/10/2019 120 $30/each 02/05/2019 8 0 $32leach 03/15/2019 100 $33.50/each If only one sale (for the quarter) of 200 widgets was made on March 30 and Happy uses the LIFO assumption for widgets, what is the difference between ending inventory for FIFO and for LIFO (LIFO reserve) at the end of the quarter? $ 150 $ 200 $ 350 $ 420