Exercise 8-11 Estimating bad debt expense-percentage of sales LO3 Selected unadjusted account balances at December 31, 2023, are shown below for Demron Servicing. Debit $65,000 Account Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales discounts 9,000 View transaction list Credit Required: a. Demron estimates that 2% of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on De 2020, to estimate uncollectible receivables. Journal entry worksheet

c. Record the adjusting entry required on December 31,2024 , to estimate uncollectible receivables, assuming it is based on 2% of net credit sales. Note: Enter debits before credits. b. During 2024 , credit sales were $589,000 (cost of sales $386,190 ); sales discounts of $13,000 were taken when accounts receivable of $476,700 were collected; and accounts written off during the year totalled $10,800. Prepare the entries for these transactions. Exercise 8-11 Estimating bad debt expense-percentage of sales LO3 Selected unadjusted account balances at December 31, 2023, are shown below for Demron Servicing. Required: a. Demron estimates that 2% of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on December 2020, to estimate uncollectible receivables. d. Show how accounts receivable would appear on the December 31, 2024, balance sheet