At Dec. 31, 2020, Evonik industries Inc. estimates total bad debts that will become uncollectible in the future as $60,000. The existing balance in the allowance for doubtful accounts is a credit balance of $15,000. The accounts receivable balance at Dec. 31, 2020 is $985,200

- If Evonik Industries Inc. uses percentage of receivables basis to estimate its bad debts, the amount of the bad debt adjusting entry at Dec. 31, 2020 will impact the statement of financial position accounts. Please try to describe the changes, and try to confirm the cash realizable value of accounts receivable reported on the financial position statement at Dec. 31, 2020.

- The total credit sales for 2020 are $25,000,000 and about 2% of credit sales are estimated as uncollectible. If Evonik Industries Inc. uses percentage of sales basis to estimate its bad debts, please try to describe the changes, and try to confirm the cash realizable value of accounts receivable reported on the financial position statement at Dec. 31, 2020.