The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debts expense. The company's management estimates that 4% of not credit sal will be uncollectible for the year 2019. Net credit sales for the year amounted to $300,000. What is the amount of Bad Debts Expense reported on the income statement for 20197 $14,000 $12.000 $11,000 $10,000 QUESTION 2 Which of the following is CORRECT? In a period of rising cows, the first intr-out (FIFO) method results in a lower cost of goods sold and a higher gross profit than the first-out (LF) method Given the same purchase and sales date, and tuming the cout of inventory is rising the costing methods for inventory will result in different amounts for sales revenue When using the PFO inventory costing method, end merchandise vertory will be the highest, as compared to LIFO and weighted average Inventory costing methods when we decreasing in a period of rising costs, the first in, fru-out (FFO) method results in a higher cost of goods sold and a lower gross profit than the otin, trato (uroj metod QUESTIONS Which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? It is reported as a current liability It is reported as an operating expense It is reported as a separate, independent line item under current assets It is shown as a contra account related to accounts receivable QUESTION 4 A company purchased 400 units for $30 each on January 31, purchased 150 units for $40 each on February 28 il sold 200 units for $58 each from March 1 through December 31. the company last-in, first-out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 317 (Assume that the company was a perpetual entry) $7,500 O $7,350 $7,650 $7,800 Save Al Ans