The following information relates to Problems 2 and 3, which are independent situations:

Munster Inc. has the following unadjusted year-end trial balance information available for 2020. There were no write-offs during the year:

Credit sales	$600,000
Ending accounts receivable balance	$180,000
Ending allowance for uncollectibles	$1,500

2. If Munster Inc. uses the sales revenue approach for estimating the bad debt provision and estimates that 1% of sales will be uncollectible, the income statement should show an expense of

$1,800

$6,000

$150

$4,200

3. If Munster Inc. uses the gross accounts receivable approach for estimating the bad debt provision and estimates that 4% of AR will be uncollectible, the income statement will show an expense of

$2,100

$3,600

$5,100

$8,500