Please help me in answering these questions (explain, please).

1. Outstanding checks and customer NSF checks are deducted from the bank side of a bank reconciliation.

True or False

2. A company has $1,000,000 in accounts receivable balances, and the allowance account currently has a debit balance of $20,000. The company uses a % of receivables approach to accrue for bad debts. If the company determines 5% of the A/R balances are not collectible, what adjusting entry should they make?

A. Debit: Bad debts expense $20,000 and Credit: Allowance $20,000

B. Debit: Bad debts expense $50,000 and Credit: Allowance $50,000

C. Debit: Bad debts expense $30,000 and Credit: Allowance $30,000

D. Debit: Bad debts expense $70,000 and Credit: Allowance $70,000

3. Which of the following is NOT a good internal control procedure over accounts receivable?

A. A bank reconciliation performed each month

B. Checking a customer's credit prior to granting credit approval

C. Aging the accounts receivable

D. Actively pursuing collection of past due accounts