Exercise 8-11 Estimating bad debt expense-percentage of receivables LO3 CHECK FIGURE: d. Accounts receivable (net) = $235,200; Refer to the information in Exercise 8-10. Required Page 566 a. Assume that Demron estimates uncollectible accounts as 2% of receivables. Prepare the adjusting entry required on December 31, 2017, to estimate uncollectible receivables. b. During 2018, credit sales were $620,000 (cost of sales $406,500); sales discounts taken were $12,000; accounts receivable collected were $440,000; and accounts written off during the year totalled $10,000. Prepare the entries to record these transactions. c. Record the adjusting entry required on December 31, 2018, to estimate uncollectible receivables, assuming it is based on 2% of receivables. d. Show how accounts receivable would appear on the December 31, 2018, balance sheet. Analysis Component: Comment on the advantages and disadvantages of using the balance sheet approach for estimating uncollectibles.