1. On December 31, 2016, Royal Corporation had the following account balances relate receivables prior to recording adjusting entries: e following account balances related to credit sales and Accounts receivable $25,000 Allowance for doubtful accounts 800 (credit) Sales revenues (all sales were on-account) 400,000 As the first step in the adjustments process, Royal decided that it will no longer attempt to collect a $500 balance owed to it by Regional Inc. and will write off this balance. Requirements: A. Present the journal entry that Royal Corporation would record to write off the Regional Inc. accounts receivable balance on 12/31/16. Then, show the balances in the general ledger (use T accounts) for the three accounts listed above after the adjustment has been recorded. (4) B. Present the necessary year-end adjusting entry, after the Write-off of Regional Inc.'s balance has been recorded, related to uncollectible accounts for each of the following independent assumptions (use the method corresponding to each assumption): B1. An aging of accounts receivable is completed. It is estimated that $2,150 of the receivables outstanding will be uncollectible. (3) B2. It is estimated that 1% of credit sales for the year will prove to be uncollectible. (3) B3. Assume the same information presented in part B1 except that the allowance for doubtful accounts had a debit balance of $200 rather than the one you calculated in part A after writing off the Regional Inc. receivable. (2) C. Assume Royal Corporation is subject to a 30% income tax and uses alternative B2 above. C1. If Royal decides to reduce its 1% estimate to 0.5% of credit sales, by how much will this increase/decrease 2016 net income? (4) C2. If Royal decides to reduce its 1% estimate to 0.5% of credit sales, which accounts in the 12/31/16 balance sheet would be impacted and by how much? (4)