QUESTION 6 Cafe Tropicals Allowance for Bad Dobes account has a credit balance of $4,000 belore the adjusting entry for bad debts expense. The company's management estimates that 4% of Accounts Receivable will be uncollectible for the year 2020. Accounts Receivable has a balance of $250,000 Wat will be the balance of Allowance for flad Debts on the December 31, 2020 balance sheet? O 514,000 $10,000 59,840 O $4,000 QUESTION 7 Cafe Tropical's Allowance for Bad Debts account has a credit balance of 54.000 before the adjusting entry for bad debts expense. The company's management estimates that 4% of Accounts Receivable will be uncollectible for the year 2020. Accounts Receivable has a balance of $250,000. What is the amount of Bad Debis Expense reported on the income statement for 2020? O 314,000 O $4.000 $6,000 $10,000