Accounts Receivable Journal Entries 3. On January 1 of the current year, Neptune, Inc. had the following accounts on its books: Accounts Receivable $240,000 (debit) Allowance for Doubtful Accounts 8.000 credit) During this year, credit sales were $1,200,000 and collections on account were $1,160,000, Required: a. Prepare general joumal entries for the following transactions that occurred during the year: (1) Wrote off N. Purcell's account, $6,800. (2) Wrote off J. Stein's account, $2.400 (3) J. Stein, who is in bankruptcy, paid $800 in final settlement of the account written off in transaction (2). This amount is not included in the $1,160,000 collections. (4) On December 31, estimated the year's bad debts expense at 1% of credit sales b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the year-end balance sheet