QUESTION 6 Reference: 06-01 Liberty Company estimates that its annual bad debts approximate 4% of credit sales. Liberty had the following balances at year end prior to recording adjusting entries: Credit Sales $160,000 Trade Receivables $30,000 Allowance for Doubtful Accounts $100 (debit balance) Following the completion of an aging analysis, the accountant for Liberty estimated that $1,100 of the receivables would be uncollectible. The year-end adjusting entry to record bad debt expense would include which of the following? Debit to bad debt expense of $1,000. Debit to bad debt expense of $900. Credit to allowance for doutful accounts of $1,200. Credit to allowance for doubtful accounts of $1,100