TRANSACTION ANALYSIS: Dartmouth Ties Corporation is a merchandising company that has been in operation for two years. The company sell high$-$end ties for men. They purchase their inventory from overseas companies with fair trade agreements and sell their products in the U$.$S$.$ Below find a number of activities that occurred during the year. Please select the correct journal entry for each transaction. Transactions that are related will have the same transaction number. $($Answer Q$\mathrm{.}17$ to Q$\mathrm{.}33)$

Q$25.$ Transaction $3$C $$ December $31,2018$: What is the amount of the adjusting journal entry for interest expense?

A$.$

$$6,000$

B$.$

$$8,000$

C$.$

$$4,000$

D$.$

$$3,000$

E$.$

$$500$ The Allowance for Doubtful Accounts account has a $$6,000$ beginning $($credit$)$ balance. Bad debt expense is estimated to be $2\%$ of net credit sales of $$1,000,000.$ Present the necessary year$-$end adjusting entry for bad debt expense related to uncollectible accounts using the Percentage of Credit Sales method