Ortiz Automotive ended December 2009 with Accounts Receivable of $20,000 and Allowance for Uncollectible Accounts of $5,900. During January 2010, Ortiz Automotive completed the following transactions:

Requirements 1. Prepare journal entries to record sales, collections, write-offs of uncollectibles, and uncollectible accounts expense by the percent-of-sales method.
2. Calculate the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and net Accounts Receivable at January 31. How much does Ortiz Automotive expect to collect?

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Sales of $260,000, which included $160,000 in credit sales and $100,000 of cash sales. Cash collections on account, $54,000. Write-offs of uncollectible receivables, $2,500. Uncollectible accounts expense, estimated as 4% of credit sales.