Call systems company, a telephone service and supply company, uses the allowance method to record its bad debts. On January 1 of its sixth year, the company has 5,000 credit balance on the Allowance for Doubtful Accounts. During the year, the company wrote off $5,500 of bad debts. On December 31 of the sixth year, the company has $100,000 outstanding accounts receivable and net credit sales of $500,000. The company estimated that 1% of credit sales are uncollectible. 1) Journalize the entry to record writing off the bad debt and post it on the ledger account. 2) Journalize the adjusting entry to record bad debt expense at the year end and post it on the ledge account. 3) Compute the net realizable value of account at the year end and show how it is reported on the balance sheets