Which of the following is TRUE about reporting of accounts receivable? there is no need to estimate and account for bad debts As bad debts are not known when credit sales happen, we have no need to adjust Accounts receivable to reflect bad debts. Bad debt expense is used to adjust Sales Revenue to reflect uncollectible credit sales Allowance for doubtful accounts is not reported to adjust accounts receivable on the balance sheet ABC Co. uses the allowance method to report its accounts receivable. It recorded an adjusting entry at Jan 31st: Dr. Bad Debt Expense 900 Cr. Allowance for Doubtful accounts 900. Accounts receivable has an ending balance at Jan. 31st of 200,000. Allowance for Doubtful accounts has a balance of 14,100 on Jan 1st and no other transaction recorded except for the adjusting entry above. Bad debt expense has a zero balance on Jan1st and no other transaction recorded except for the adjusting entry above. Which of the following statement is correct? the ending balance of bad debt expense is 900. the ending balance of Allowance for doubtful accounts is 900 None of the above is correct Accounts receivable net of allowance for doubtful accounts is 185,000