5 it of ABC Computers had credit sales of $600,000 in 2020 and a debit balance of $90,000 in accounts receivable at December 31, 2020. Aging of accounts receivable is as follows: 30 days of less: $50,000 31 to 45 days: $30.000 Over 45 days: $10.000 Total accounts receivable: $90.000 Management estimates that 10% of receivables that are 31 to 45 days old will be uncollectible and 20% of the receivables over 45 days old will be uncollectible. The December 31, 2020 unadjusted trial balance shows Allowance for Doubtful Accounts with a $1,000 credit balance. Required 1. What should be balance in the Allowance for Doubtful Accounts at December 31, 2020 based on management's estimate of uncollectible receivables? (2 marks) 2 What amount should the "Allowance for Doubtful Accounts account be credited in the December 31, 2020 adjusting journal entry? (2 marks) 3. Why might management be willing to sell on account to its customers even with the cost of uncollectible debt? (1 mark) Av B 1 g