Exercise 8-11 Estimating bad debt expense-percentage of sales LO3 CHECK FIGURE: d. Accounts receivable (net) $232,700 Selected unadjusted account balances at December 31, 2020, are shown below for Demron Servicing. nts Notes receivable, due Nov. 30, 2020 Supplies... "Assume all balances are normal 14 300 5.260 Account Debit Credit $70,000 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales discounts $ 1,100 480.000 8,000 Required 2. 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. b. During 2021, 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. 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. d. 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 a proach for estimating uncollectibles. nercentage of receivables LO3 L&aunanca