CP 74 Koss Co. Ltd. began operations on January 1, 2018. It had the following transactions during 2018, 2020, and 2021. 2018 Dec. 31 Estimated uncollectible accounts as $5,000 (calculated as 2% of sales) 2020 Apr. 15 Wrote off the balance of N. Lang, $700 Aug. 8 Wrote off $3,000 of miscellaneous customer accounts as uncollectible Dec. 31 Estimated uncollectible accounts as $4,000 (1% of sales) 2021 Mar. 6 Recovered $200 from N. Lang, whose account was written off in 2020; no further recoveries are expected Sept. 4 Wrote off as uncollectible $4,000 of miscellaneous customer accounts Dec. 31 Estimated uncollectible accounts as $4,500 (1% of sales). CHAPTER SEVEN / Cash and Receivables First US Edition Required: 1. Prepare journal entries to record the above transactions. 2. Assume that management is considering a switch to the balance sheet method of calculating the allowance for doubtful accounts. Under this method, the allowance at the end of 2021 is estimated to be $2,000. Comment on the discrepancy between the two methods of estimating allowance for doubtful accounts.