Chapter 5 Lab At the beginning of 2004. AB Tech Company's Accounts Receivable balance was $110,000, and the balance in the Allowance for Doubtful Accounts was $2,500. AB Tech's sales in 2004 were $1,000,000,80% of which were on credit. Collections on account during the year were $600,000 The company wrote off $6,000 of uncollectible accounts during the year. Required: 1. Determine the effect on AB's accounting equation of the estimate of bad debts assuming bad debt expense is 2% of credit sales. Also, prepare the journal entry. 2. Determine the effect on AB's accounting equation relative to the write-offs of accounts receivable during 2004. Also, prepare the journal entry. 3. What is the net realizable value of AB's accounts receivable on December 31, 2004, after recording the above two entries. 4. Paddy's Pub owns 4,000 shares of Ford Motor Company which they paid S14 per share for on March 2011. On Dec 31 2011 (the day Paddy's closes their reporting period for 2011) Ford Motor Company shares had a closing price of S18 per share. On February 3, 2012, Paddy's Pub sold their shares of Ford Motor Company for $28 per share. Prepare the journal entry to record Paddy's sale of the Ford Motor Company shares on 2/3/2012. Assume this investment is treated as trading securities