Exercise 8-12 Estimating bad debt expense-percentage of receivables LO3 Selected unadjusted account balances at December 31, 2020, are shown below for Demron Servicing. Credit Account Debit Accounts receivable $72,000 Allowance for doubtful accounts Sales (all on credit) Sales discounts 10,000 $ 1,140 498,000 Required: a. Assume that Demron estimates uncollectible accounts as 3% of receivables. Prepare the adjusting entry required on December 31, 2020 to estimate uncollectible receivables. View transaction list View journal entry worksheet Debit General Journal No Credit Date December 31 2020 1,020 1 Bad debt expense Allowance for doubtful accounts 1,020 b. During 2021, credit sales were $644,000 (cost of sales $422,240); sales discounts taken were $14,000, accounts receivable collected were $513,400, and accounts written off during the year totalled $11,600. Prepare the entries to record these transactions. View transaction list Journal entry worksheet 1 2 3 4 > Record the credit sales during 2021. Note: Enter debits before credits. Year General Journal Debit Credit 2021 Record entry Clear entry View general journal c. Record the adjusting entry required on December 31, 2021, to estimate uncollectible receivables, assuming it is based on 3% of net credit sales. View transaction list Journal entry worksheet Record the estimate for uncollectible accounts. Note: Enter debits before credits Date General Journal Debit Credit December 31, 2021 Record entry Clear entry View general journal