1. Sweetson Enterprises' comparative balance sheets included accounts receivable of $220,300 at December 31, 2016, and $200,900 at December 31, 2017. Sales reported on Sweetson's 2017 income statement amounted to $2,350,000. What is the amount of cash collections that Sweetson will report in the Operating Activities category of its 2017 statement of cash flows assuming that the direct method is used? 2. Murrysville Company had the following data available for 2016 (before making any adjustments): Accounts receivable, 12/31/16 Allowance for doubtful accounts Net credit sales, 2016 Required: $343,200 (Dr.) 3,800 (Cr.) 829,000 (Cr.) 1. Prepare the journal entry to recognize bad debts under the following assumptions: (a) Bad debts expense is expected to be 3% of net credit sales for the year and (b) Murrysville expects it will not be able to collect 7% of the balance in accounts receivable at year- end.