QUESTION 9 The Allowance for Bad Debts account has a credit balance of 58,300 before the adjusting entry for bad debts expense. Aher analyzing the accounts in the accounts receivable subsidiary ledgerusing the aging of-receivables method, the company's management estimates that uncofect ble accounts will be $14.700. What will be the balance of the Allowance for Bed Debts reported on the balance et $23.000 $13.230 $14,700 56,400 QUESTION 7 On March 18, James Smith purchased $5,000 of furniture from Home Furnishings on account. The cost of the goods was $3,000. On March 20, Home Furnishings granted the customer a $1,000 sales allowance for goods damaged in transit. For Home Furnishings, which of the following represents the correct way to record this transaction? Sales Returns and Allowances 1.000 Cash 1,000 1 cod Sales Revenue Cash * 1,000 1,000 Refunds Payable Cash 1,000 800 800 Merchandise Inventory Estimated Returns Inventory Refunds Payable Accounts Receivable 1,000 1.000 QUESTION 21 The ending merchandise inventory for the current accounting period is overstated. What will be the effect of this error? The net income for the current accounting period will be understated. The gross profit for the next accounting period will be understated, The cost of goods sold for the current accounting period will be overstated. The cost of goods sold for the next accounting period will be understated