w wwepo tu Gastu as Ul the end of that year? 10. Nuance Company had net credit sales for the year of $500,000. Nuance estimates that 2 percent of its net! credit sales will never be collected. a. Prepare the entry to record Nuance's bad debt expense for the year. b. Nuance had accounts receivable of $100,000 at the end of the year. Show how the net accounts receivable balance would be reported on the balance sheet. Assume that the allowance for doubtful accounts had an unadjusted credit balance at the end of the year of $1,000. c. Why is the accounts receivable balance shown at net rather than just showing the full amount? 11. Assume that Nuance, in number 10, used the percentage of receivables method to estimate uncollectible accounts instead of the percentage of sales method. Nuance assumes that 5 percent of accounts receivable will never be collected a. Prepare the entry to record Nuance's bad debt expense for the year. b. Show how the net accounts receivable balance would be reported on the balance sheet. c. Why are companies allowed to choose between the percentage of sales and the percentage of receivables method