6: Accounts Receivable (12 Marks) Mountain Corp. is a manufacturing company for mountain bikes. Given the current econom downturn, the Company is having increased trouble collecting its accounts receivable from retailers. The total sales for the year were $860,000. Of these sales, $800,000 were credit sales. Allowance for Doubtful Accounts is at a credit balance of 4,000. The company uses the Agin Accounts receivable method (Balance Sheet Approach) You were provided the following additional information: Age of Accounts Receivable Current Accounts Estimated Percent I Amount Uncollectible $100.000 2% 1-30 days 88,000 4% 31-60 17,000 6% 61-90 24,000 22% Over 90 days 8,000 42% Total Accounts Receivable $237.000 Required: c) Record the adjusting journal entry at December 31, 2020 (3 Marks) Date Calculations: Account Debit Credit d) Assume now that the company uses the Income Statement approach. The Company believes that 1.5% of net credit sales will be bad debts. Prepare the adjusting journal entry at December 31, 2020 using the Percentage of Sales method. (4 Marks) Date Calculations: Account Debit Credit