Rice Automotive ended December 2014 with Accounts Receivable of $30,000 and Allowance for Doubtful Accounts of $1,500. During January 2015, Rice Automotive completed the following transactions:

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

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Sales of $180,000, which included $120,000 in credit sales and $60,000 of cash sales. Cash collections on account, $90,000. Write-offs of uncollectible receivables, $1,200. • Bad debt expense, estimated as 2% of credit sales.