a. Demron estimates that 2% of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on December 31, 2017, to estimate uncollectible receivables.

b. During 2018, credit sales were $716,000 (cost of sales $469,460); sales discounts of $20,000 were taken when accounts receivable of $733,600 were collected; and accounts written off during the year totalled $16,400. Prepare the entries for these transactions. Assume Perpetual inventory system is used.

c. Record the adjusting entry required on December 31, 2018, to estimate uncollectible receivables, assuming it is based on 2% of net credit sales.

d. Show how accounts receivable would appear on the December 31, 2018, balance sheet.