At December 31,2016 , House Co. reported the following information on its balance sheet. During 2017 , the company had the following transactions related to receivables. Step 1) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. Step 2) Enter the January 1, 2017, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. (Note: Students to create the t-accounts in Excel) Step 3) Prepare the journal entry to record bad debt expense for 2017, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000