I have no idea if what I have done so far is right but I am also really confused about the last 2 parts of the question for doing the accounts receivable section of the statement of financial position and the amount of bad debts expense.

Thank you in advance!

Majestic Equipment Sales Company, which sells only on account had a $136,000 balance in its Accounts Receivable and a $5.700 credit balance in its Allowance for Doubtful Accounts on December 31, 2019. During 2020, the company's sales of equipment were $836,000 and its total cash collections from customers were $791,000. During the year, the company concluded that customers with accounts totalling $6,500 would be unable to pay, and wrote these receivables off. However, one of these customers subsequently made a payment of $850. (Note that this amount is not included in the cash collections noted above. At the end of 2020, management decided that it would use an estimate for bad debts of 1% of its credit sales. Prepare the journal entries to record all the 2020 transactions, including the adjustment for bad debts expense at year end. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Accounts Receivable 836000 Sales Revenue 836000 (To record sales) Cash 791000 791000 6500 6500 Accounts Receivable (To record cash collected from customers) Allowance for Doubtful Accounts Accounts Receivable (To write off accounts receivable) Accounts Receivable Allowance for Doubtful Accounts (To reinstate an account that were previously written off) 850 850 Cash 850 Accounts Receivable 850 (To record recovery of account that were previously written off) Bad Debts Expense 8360 8360 Allowance for Doubtful Accounts (To recognize the bad debts expense) Show how the accounts receivable section of the statement of financial position at December 31, 2020, would be presented. Majestic Equipment Sales Company Statements of Financial Position (Partial) For the Year Ended December 31, 2020 Accounts Receivable 174500 Less Accounts receivable, net e Textbook and Media List of Accounts What amount of bad debts expense would appear in the statement of income for the year ended December 31, 2020? Bad debts expense for year $ eTextbook and Media List of Accounts