Exercise 8-10Estimating bad debt expense-percentage of sales LO3 CHECK FIGURE: d. Accounts receivable (net) - $232,700 Selected unadjusted account balances at December 31, 2017, are shown below for Demron Servicing. Account Debit Credit Accounts receivable... $70,000 Allowance for doubtful accounts $ 1,100 Sales (all on credit) 480,000 Sales discounts 8.000 Click here for a description of Table: Exercise 8-10. Required a. Demron estimates that 1.5% of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on December 31, 2017, to estimate uncollectible receivables. 2. During 2018, credit sales were $620,000 (cost of sales $406,500); sales discounts of $12,000 were taken when accounts receivable of $440,000 were collected; and accounts written off during the year totalled $10,000. Prepare the entries for these transactions. Record the adjusting entry required on December 31, 2018, to estimate uncollectible receivables, assuming it is based on 1.5% of net credit sales. 3. 4. Show how accounts receivable would appear on the December 31, 2018, balance sheet. Analysis Component Comment on the advantages and disadvantages of using the income statement approach for estimating uncollectibles