Everekse 811 Estimating bad debt expense-percentage of sales L03 CHECK FIGURE: Accounts receivable ineo - $232,700 Selected unadjusted account balances at December 31, 2020, are shown below for Democe Servicing Credit Account Accounts receivable $70.000 Allowance for doubtful accounts... Sales (all on credit) Sales discounts 8.000 $ 1.100 480,000 Required a. Demron estimates that 1.5% of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on December 31, 2020, to estimate uncollectible receivables 1. During 2021, credit sales were $620,000 (cost of sales $405,500% sales discounts of $12,000 were taken when accounts receivable of $400.000 were collected: and accounts written off during the year totalled $10.000. Prepare the entries for these transactions c. Record the adjusting entry required on December 31, 2021 to estimate uncollectible receivables, assuming it is based on 1.5% of net credit sales 4. Show how accounts receivable would appear on the December 31, 2021. balance sheet Analysis Component: Comment on the advantages and disadvantages of using the income statement approach for estimating collectibles