Help Save & Exit Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2017 balance sheet disclosed the following Check my Current assets: Receivables, net of allowance for uncollectible accounts of $49,000 s 527,808 During 2018, credit sales were $1,845,000, cash collections from customers $1,925,000, and $58,000 in accounts recelvable were written off. In addition, $4,900 was collected from a customer whose account was written off in 2017 An aging of accounts receivable at December 31, 2018, reveals the following Age Group 0-60 days 61-90 days 91-120 days Over 120 days Percentage of Year-End Receivables in Group 60% 10 20 10 Percent Uncollectible 3% 5 25 45 Required 1. Prepare summary journal entries to account for the 201 2. Prepare the year-end adjusting entry for bad debts according to each of the following situations: a. Bad debt expense is estimated to be 2% of credit sales for the year b. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is 8 write-offs and the collection of the receivable previously written off estimated to be 10% of the vear-end balance in accounts receivable arch