ABC Company's accountant had prepared the following schedule for its accounts receivable for its 2019 year-end: Accounts Receivable Category Amount Proportion expected to Default Not yet due $111.000 1% 1-30 days past due 45,000 3% 31-60 days past due 19,500 10% 61-90 days past due 4,500 20% Over 90days past due 7,500 50% Before adjusting entries are entered, the pre-adjusted balance in the Allowance for Doubtful Accounts at December 31 (year-end date) showed a debit balance of $2,700. Required: a. Based on the above information, the post adjustment balance in ABC's Allowance for Doubtful Accounts at December 31, 2019 should be (4 marks): b. Determine the bad debts expense for ABC for 2019 (2 marks): c. Assume that in January 2020, accounts receivable of $3,456 were written off as uncollectible and an accounts receivable of $468 that was previously written off in December 2019, was collected. Give the necessary journal entries (4 marks). Debit Credit To write-off uncollectible accounts receivable To collect accounts receivable previously written off SUMMARY SHEET OF SELECTED RATIOS 1.Accounts receivable turnover Net credit sales Average accounts receivable 2. Inventory turnover Cost of goods sold Average inventory 3. Current ratio = Current assets Current liabilities 4. Debt to equity ratio= Total liabilities Total equity 5. Cash ratio=Cash and short-term investments Current liabilities 6. Return on assets ratio = Average total assets Net income + (Interest expense x (1- tax rate)) 7. Quick ratio = Cash + Accounts receivable + short term investments Current liabilities 8 Return on equity ratio = Net income Average equity 9. Gross profit percentage ratio = Gross profit (or Gross Margin) Net sales 10. Net profit margin percentage ratio Net income Net sales 11. Earnings per share (EPS) = (Net Income - Preferred Dividends) Average number of common shares outstanding