Estimating and Recording Bad Debt Estimates and Write-offs; Reporting of Accounts Receivable Master Company's December 31, 2019, balances related to accounts receivable follow. $800,000 Dr Accounts receivable Allowance for doubtful accounts 40,000 Cr. During 2020, $90,000 of accounts receivable is considered uncollectible, and no more effort to collect these accounts will be made. Total sales for 2020 are $2,400,000, of which $400,0o0 are cash sales A total of $1,800,000 was collected on account during 2020. a. Assuming that Master uses the allowance method to estimate net accounts receivable and uses 9% of accounts receivable as its estimate of expected credit losses, prepare the (1) journal entries to record write-offs and bad debt expense for 2020, and (2) disclosure on gross and net accounts receivable on the balance sheet at December 31, 2020. b. How would the answers to part a change (if at all) assuming instead that the December 31, 20159, balance in the allowance for doubtful accounts was a debit balance of $10,000? Date Account Name Dr. Cr. Dec. 31, 2020 Allowance for Doubtful A 90,000 Accounts Recelvable U g0,ccc To record actEunt write-c Dec. 31, 2020 Bad Debt Expense 162.000 x Allowance for Dou btful 162,000 x To record bad cebt expense Note: Do not use negative signs with your answers. Balance Sheet, December 31, 2020 Accounts recelvable S 200,000 Less: Allowance for doubtlul accounts 18,000 x Accounts receivable, net 182,000 x