Estimating and Recording Bad Debt Estimates and Write-offs; Reporting of Accounts Receivable At December 31, 2020, its annual year-end, the accounts of Sun Systems Inc. show the following. 1. Sales revenue for 2020, $720,000, of which one-sixth was on account. 2. Allowance for doubtful accounts, balance December 31, 2019, $3,600 credit. 3. Accounts receivable, balance December 31, 2020 (prior to any write-offs of uncollectible accounts during 2020), $72,200. 4. Uncollectible accounts to be written off, December 31, 2020, $4,200. 5. Aging schedule at December 31, 2020, showing the following breakdown of total accounts receivable, excluding amounts to be written off. Status Amount Not past due Remainder Past due 1-60 days $16,000 Past due over 60 days 12,000 Required a. Prepare the 2020 entry to write off the uncollectible accounts. b. Prepare the 2020 adjusting entry to record bad debt expense for each of the following separate assumptions concerning expected bad debt loss rates. 1. Based on credit sales, 1.5%. 2. Based on total receivables at year-end, 2.5%. 3. Based on aging schedule: not past due, 0.5%; past due 1-60 days, 1%; and past due over 60 days, 8%. 4. Based on direct write-off method (assume entry in part a has not been recorded). C. Prepare the 2020 balance sheet disclosure relating to accounts receivable for each assumption 1 through 4 of part b. Date Account Name Dr. Cr. Dec 31, 2020 Account Name O Dr. Cr. Date Dec 31, 2020 Account Name Dr. Cr. Date Dec 31, 2020 Account Name Dr. Cr. Date Dec. 31, 2020 Account Name Dr. Cr Date Dec 31, 2020 Note: Do not use negative signs with your answers. Balance Sheet, December 31, 2020 Accounts receivable Less: Allowance for doubtful accounts Accounts receivable, net