2/4 100%+ Question 1 (15 marks, 30 minutes) The Artwork Corporation manufactures sweaters for sale to athletic-wear retailers. The following information was available on Artwork for the years ended December 31, 2020 and 2021: Cash 2020 2021 15,000 $ 20,000 Accounts Receivable 80,000 ? Allowance for Doubtful accounts 5,800 ? Inventories 85,000 80,000 Current Liabilities 80,000 86,000 Total credit sales 600,000 520,000 Collections on Accounts Receivable 440,000 500,000 During 2021, Artwork had the following transactions: 1. On June 1, 2021, the account of $75,000 to a major customer (Amino Inc) were settled, with Artwork accepting an $75,000, one-year note bearing 7% interest that is payable at maturity. The $75,000 is included in the collections on accounts receivable amount above. 2. Artwork wrote off $4,500 of accounts receivable during 2021. 3. Based on the latest available information, the 2021 allowance for doubtful accounts should have a balance at December 31, 2021, of $13,000. Required: a) Based on the above transactions and additional information, determine the balances of Accounts Receivable and Bad Debt Expense at December 31,2021. (4 marks) b) Prepare the journal entry for Bad Debt Expense for 2021. (2 marks) c) Prepare the journal entry related to the Amino note on Jun 1, 2021, Dec 31, 2021 and Jun 1, 2022. (7 marks) d) Prepare the current assets section of Artwork's SFP at December 31, 2021. Show all relevant calculations. (2 marks)