1. Soso, Inc. began 2020 with the following balances: AR $301,000 and Allowance for Doubtful Accounts $2,000. The following transactions occurred during 2020: Cash Sales of $900,000; Credit Sales of $500,000; AR write off of $1,000; AR collections of $700,000. SoSo, Inc. uses the AR Aging method of estimating bad debt. The following information is available: Current >30 Days >60 Days Balance $50,000 20,000 30,000 Bad Debt Rate 1% 3% 10% Requirements A. Determine the following balances at Dec. 31, 2020: -Accounts Receivable -Allowance for Doubtful Accounts -Net Receivables -Bad Debt Expense B. Complete the Journal Entry for the recording of estimated bad debts. ANSWERS Accounts Receivable Balance Allowance for Doubtful Accounts Balance (111 Net Receivables Balance Bad Debt Expense 12/31/2020 General Journal Description Dr Cr