5 of 5 View Policies Current Attempt in Progress -15 Potter Ltd. began operations in January 2019. On December 31, 2019, the end of its first year of operations, the balance in the company's Accounts Receivable account was $135,000 All of the company's sales are made on account, and during 2019, 60% of the total credit sales were collected and no accounts were written off as uncollectible. Management estimated that 2% of the credit sales would be uncollectible. During the following year, 2020, Potter had sales totalling $1,004,000. It collected 75% of these sales together with 95% of the outstanding receivables from 2019. During 2020, the company wrote off $18,700 of receivables from customers whose accounts were determined to be uncollectible. During the year, the company also recovered $2,900 from customers whose accounts had previously been written off (Note that this amount was not included in the collection figures given above) The company estimated its bad debts expense to be 2.5% of its credit sales Prepare the necessary journal entries for recording all the preceding transactions in the accounting system of Potter Ltd. for 2019 and 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually if no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation 2019 Debit Credit (To record credit sales) Question 5 of 5 2019 2020 (To record credit sales) 4 (To record cash collected from customers) (To recognize the bad debts expense) (To record credit sales) -15 1 (To record credit sales) (To recond cash collected from customers) (To write off accounts judged uncollectible). (To reinstate an account that was previously written off) Question 5 of 5 written off) (To record subsequent collection of accounts that were previously written off) (To recognize the bad debts expense) eTextbook and Media List of Accounts Show the accounts receivable section of the statement of financial position at December 31, 2020 Potter Ltd. Statement of financial position -15 H Question 5 of 5 Show the accounts receivable section of the statement of financial position at December 31, 2000 Potter Ltd Statement of financial position Accounts Receivable, Net eTextbook and Media List of Accounts -15 $