At the end of the current year, the Johnson and Johnson Family showed the following selected account balances:

Sales (all on credit)................................................................................................ $28,550,000

Accounts Receivable .. $1,300,000

Allowance for Doubtful Accounts........................................................... $19,670

Required:

1. Assume the company estimates that % of all credit sales will not be collected.

a. Prepare the proper adjusting journal entry to estimate the uncollectible

accounts.

b. Compute the ending account balances for Accounts Receivable,

Allowance for Doubtful Accounts, and Bad Debt Expense c. Present the net realizable Accounts Receivable balance as it would

appear on the balance sheet.

Explain your work.