Analyzing and Reporting Receivable Transactions and Uncollectible Accounts Using Percentage-of- Sales Method to Estimate Bad Debt Expense At the beginning of the year, Penman Company had the following account balances. I $356,000 ts21,400 During the year, Penman's credit sales were $2,008,000, and collections on accounts receivable were S1,963,000. The following additional transactions occurred during the year. Feb. 17 Wrote off Bava's account, $8,200. May 28 Wrote off Reed's account, $4,800. Dec. 15 Wrote off Fischer's account, $2,300. Dec. 3 1 Recorded the bad debts expense assuming Peman's policy is to record bad debts expense as D99 of credit sales. (Hint: The allowance account is increased by 0.9% of credit sales regardless of write-offs.) Compute the ending balances in accounts receivable and the allowance for uncollectible accounts. Show how Penman's December 31 balance sheet reports the two accounts