Assume that atlantic national bank has demand deposits of $100,000 and no excess reserves, and that the reserve requirement is 10 percent. a customer withdraws $5,000 from the bank. to meet the reserve requirement, the bank must increase its reserves by
(a)$500
(b)$1,000
(c)$2,000
(d)$4,000
(e)$4,500
why

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