Assume your company uses a periodic inventory system and had the following balances on January 1, 2020 and completed the chronological transactions listed below: Accounts Receivable $220,000 Allowance for Doubtful Accounts (12.000) Net Realizable Value 208,000 During 2020 1. Sold merchandise on account for $850,000 to various customers. 2. Collected $796,000 of accounts receivable 3. Wrote off $7,000 of accounts which were one year old. 4. On December 31, estimated bad debts as 2% of NET Sales. During 2021 5. Sold merchandise for $900,000 on account, terms 2/10, n/30 to various customers. Use the gross method. 6. Collected 80% of this year's sales (in #5 above) within the 10 day period. 7. Wrote off $33,000 of accounts receivable. Some of these accounts were one year old and one large account was from a customer who just declared bankruptcy. 8. Collected an additional $165,000 of accounts receivable AFTER the discount period. Some of these accounts were from 2020. 9. One customer returned merchandise which had been sold for $3,000. This customer had not yet paid his account, so you credited his account. 10. On December 31, because of worsening economic conditions, estimated bad debts as 3% of NET Sales Instructions: A. For the above events, please prepare the appropriate entry in general journal form. B. What is the balance in the following accounts at the end of 2020 and the balance at the end of 2021 (please show your work - a T-account for each account for each year would be helpful): 1. Accounts Receivable 2. Allowance for Doubtful Accounts 3. Bad Debts Expense