Bad Debt Expense Flash Co. makes all of its sales on account and uses the allowance method to account for uncollectible accounts. On January 1, 2020, Flashs accounts receivable were $17,800,000 and the balance in its allowance for doubtful accounts was $24,500 (normal balance). During 2020, Flash recorded credit sales of $93,000,000 and collected $97,600,000 on account from its customers. Also, during 2020, Flash wrote off $32,900 of accounts receivable as uncollectible. Based on an aging of accounts receivable at 12/31/20, the company has determined that $28,700 of the 12/31/20 accounts receivable may eventually become uncollectible.

Requirement 1: Prepare the journal entry that Flash used to write-off the 32,900 of accounts receivable during 2020. (2 points)

Requirement 2: Prepare journal entry to record the year-end adjusting entry for bad debt expense. Show your work. (4 points)

Requirement 3: What is the net realizable value of the accounts receivable at 12/31/20? Show your work. (5 points)