7 The Tulip Company uses the percent of of .a receivable, and a perpetual inventory (Accounts Receivable S500,000 less a $15,000 Allowance for Doubtful Accounts). During the curre the following transactions occurred. of receivables method of accounting for uncollectible accounts system. As of January 1, its net accounts receivable totaled $485,000 1) 2) 3) 4) 5) Merchandise costing $2,400,000 was sold on account for $4,000,000. The company collected $3,880,000 from customers on account. $20,000 $3,000 of accounts receivable were deemed uncollectible and written off. of accounts receivable previously written off as uncollectible were recovered. t year-end, Lily Company estimates that 3% of its accounts receivable are uncollectible. Prepare journal entries to record these transactions