Accounting information systems

At January 1, 2024, ABC had Accounts Receivable of $28,000, and Allowance for Bad Debts had a credit balance of $3,000. During the month of January, ABC recorded the following transactions. Note that ABC uses the allowance method).

A. Sales of $185,000 ($164,000 on account; $21,000 for cash)

B. Collections on account for $135,000

C. Write-offs of uncollectible receivables for $2,300

Requirements:

1. Journalize the transactions that occurred during January, and journalize the adjusting entry to record bad debts expense assuming ABC estimates bad debts as 10% of accounts receivable on January 31, 2024.
2. Calculate the net realizable value
3. Show how ABC will report net accounts receivable on its balance sheet on January 31, 2024 (prepare a partial balance sheet).