Ch8 Activity As of January 1, 2017, the balance sheet of Redwood Company has an Accounts Receivable balance of $500,000 and an unadjusted credit balance in the Allowance for Doubtful Accounts of $25,000. During 2017, the following transactions occurred 1: Sales on account for $600,000 2: Sales returns and allowances for $75,000 3: Collections from customers for $450,000 4: Customer account balances written off for $85,000. 5: Previously written off customer account balances for $40,000 were collected. Instructions: (a) Journalize the above 2017 transactions. or $85,000 5: Previously written of eutos (b) The company uses the percentage of receivables method to estimate bad debt expense. Redwood Company estimated that uncollectible account balances are expected to be 30% of total accounts receivable as of December 31, 2017. What is the adjusting entry at December 31, 2017