Exercise 7-11 Uncollectible accounts; allowance method; balance sheet approach [LO7-5,7-6] Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2018 accounts receivable totaled $690,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $45,000 at the beginning of 2018 and $27,500 in receivables were written off during the year as uncollectible. Also, $2,500 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year. Required: 1. Prepare journal entries to record the write-off of receivables, the collection of $2,500 for previously written off receivables, and the year-end adjusting entry for bad debt expense 2. How would accounts receivable be shown in the 2018 year-end balance sheet