1. 1. On December 31, 20X1, the company reported a debit balance of $300,000 in accounts receivable and a credit balance of $7,000 in the allowance for expected credit losses. December 31 is the company's reporting date. During 20X2, the company had the following transactions:

a. The company made a credit sale of $500,000.

b. The company collected accounts receivable for 650,000.

c. The company wrote off the uncollectible accounts for $20,000.

d. The company collected the receivable of $3,000 that had been written off previously and was not included in the amount of cash collected for Transaction b.

Required (12 marks):

1. Prepare journal entries to record the above four transactions.

Assume that 3% of the company's accounts receivable cannot be collected, prepare the adjusting journal entry at the end of 20X2