1) Management at Dextera Co. estimates that 5% of the ending Accounts Receivable balance will be uncollectible. At the end of their first year of operations, the ending balance in Accounts Receivable is $36,000. a. Prepare the journal entry to record Bad Debt Expense 12/31/x1 b. How does posting the journal entry in 1a affect the accounting equation? C. If Dextera Co. does not make the journal entry in 1a, what is the effect on the financial statements? (list all effects) d. What is the Net Realizable Value of Accounts Receivable reported in Dextera's balance sheet as of 12/31/x1? 2) Assume that during year 2 Dextera had net credit sales of $550,000 and collections of $536,000. During year 2, Dextera also identified $2,800 of Accounts Receivable to write-off due to customers' inability to pay. a. What journal entry would be used to record the write-off of $2,800? 12/31/x2 b. How does posting the journal entry in 2a affect the accounting equation? C. What is the Allowance for Doubtful Accounts balance after this write off? (Your answer should indicate the amount and whether the balance is a Debit or Credit. Hint: Use a T-account to determine your answer.) d. Management at Dextera Co. assumes that at the end of their second year of operations 6% of its new ending Accounts Receivable balance will be uncollectible. Using the Allowance for Doubtful Accounts balance from question 2c, prepare the journal entry to record Bad Debt Expense at the end of Dextera's second year of operations. (Hint: Use a T-account to determine the year 2 ending balance in Accounts Receivable.) 12/31/X2