During the year of 2019, Adventure Manufacturing Ltd. had sales of $925,000, all on account and collection on credit sales was $820,000. Industry experience suggests that Adventure Manufacturing Ltd.s bad debt expense will be $21,200. At December 31, 2019, Adventure Manufacturing Ltd.s accounts receivable total $105,000. The company uses the allowance method to account for uncollectible.

Required:

1. Make Adventure Manufacturing Ltd.s journal entry for sales, cash collection and bad debt expense. (6 marks)
2. Show how Adventure Manufacturing Ltd. could report accounts receivable on its balance sheet on December 31, 2019, by disclosing the allowance for uncollectible accounts. (4 marks)