Example #2 (module 4) The following transactions relate to Betty DeRose, Inc.: January 4, 2004: Made a credit sale to M.T. Glass, a customer, in the amount of $2,500 and a credit sale to Sandy Beach, a customer, in the amount of $4,000. March 19, 2004: Sandy Beach paid the $4,000 owed from the January 4 sale. September 27, 2004: After a concerted effort to collect, the $2,500 account receivable from M.T. Glass was written off as uncollectible. December 31, 2004: Based on past experience, Betty DeRose estimates that 1% of the years credit sales of $246,000 will be uncollectible. March 8, 2005: M.T. Glass paid the $2,500 account receivable written off above. REQUIRED: (1) Prepare the journal entries for the above five transactions. (2) Indicate the effect of each transaction on: a. Net income (income statement). b. Net realizable value (balance sheet). c. Cash flows (statement of cash flows)