The adjusting entry to record the estimated bad debts in the period credit sales occur would normally include a debit to: A. Bad Debt Expense and a credit to Accounts Receivable. B. Allowance for Doubtful Accounts and a credit to Accounts Receivable. C. Bad Debt Expense and a credit to Allowance for Doubtful Accounts. D. Accounts Receivable and a credit to Allowance for Doubtful Accounts.

As a result of a thorough physical inventory, waterway company determined that it had inventory worth $320200 at december 31, 2020. this count did not take into consideration the following facts: walker consignment currently has goods worth $47400 on its sales floor that belong to waterway but are being sold on consignment by walker. the selling price of these goods is $75900. waterway purchased $21900 of goods that were shipped on december 27, fob destination, that will be received by waterway on january 3. determine the correct amount of inventory that waterway should report.