Which of the following journal entries correctly represents an increase in equity? ODEBIT: Retained Earnings: CREDIT: Loan Payable ODEBIT: Common Stock; CREDIT: Cash ODEBIT: Common Stock; CREDIT: Prepaid Rent Expense O DEBIT: Cash; CREDIT: Common Stock Question 5 1 pts During Year 1, Ellie Department Store had total sales of $2,000,000, of which 70% were on credit. During the year, $1,500,000 cash was collected on credit sales. The beginning balance in Accounts Receivable (on January 1 of Year 1) was $200,000. The beginning balance in the Allowance for Bad Debt (on January 1 of Year 1) was $30,000. The amount of accounts written off as uncollectible during the year was $20,000. Management uses the **percentage of sales method** and estimates that 5% of credit sales will ultimately be uncollectible. Which ONE of the following is included in the journal entry necessary at the end of the year to record bad debt expense for the year? O A CREDIT to Accounts Receivable for $70,000. O A DEBIT to Allowance for Bad Debt for $70,000. O A CREDIT to Bad Debt Expense for $70,000. O A DEBIT to Bad Debt Expense for $70,000. O A CREDIT to Cash for $70,000. O A DEBIT to Accounts Receivable for $70,000