5) The Lily Company uses the percent of receivables method of accounting for uncollectible accounts receivable, and a perpetual inventory system. As of January 1, its Accounts Receivable balance is $200,000 and Allowance for Doubtful Accounts is $8,000. During the current year, the following transactions occurred. 1) Merchandise costing $1,050,000 was sold on account for $1,400,000. 2) The company collected $1,294,000 from customers on account. 3) $6,000 of accounts receivable were deemed uncollectible and written off. 4) $1,000 of accounts receivable previously written off as uncollectible were recovered. 5) At year-end, Lily Company estimates that 4% of its accounts receivable are uncollectible. Prepare journal entries to record these transactions (journal entries are not required for beginning balances)