John’s parents passed away within six weeks of one another. As the trustee, John is following the trust instructions and will sell the family home. John will be paid in accordance with the trust documents. Which of the following is correct?

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false