In 2013, Maxton Company sold its products on credit in the amount of $919,600. Total cash collections during the year were $735,680. The company determined that $4,598 of accounts receivable would not be collected and wrote them off. At the end of 2013, management decided to increase its percentage to 1% of credit sales compared to 0.5% from last year because of the amount of accounts receivable that proved to be uncollectible during the year. At the end of 2012, the company had $164,300 in accounts receivable and a credit balance of $5,700 in allowance for doubtful accounts. Assume the company has a year end of December 31.

Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. a) Prepare the necessary journal entries to record all 2013 transactions including sales on account, collection, the write-off, and the new allowance amount. To simplify the transactions, all dates will be December 31.

Date	Account Title and Explanation	Debit	Credit
Dec 31	AnswerAccounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashCommon StockCost of Goods SoldInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryNotes ReceivablePrepaid InsurancePrepaid RentProperty, Plant & EquipmentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashCommon StockCost of Goods SoldInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryNotes ReceivablePrepaid InsurancePrepaid RentProperty, Plant & EquipmentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned Revenue		Answer
	To record sales on account
Dec 31	AnswerAccounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashCommon StockCost of Goods SoldInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryNotes ReceivablePrepaid InsurancePrepaid RentProperty, Plant & EquipmentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashCommon StockCost of Goods SoldInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryNotes ReceivablePrepaid InsurancePrepaid RentProperty, Plant & EquipmentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned Revenue		Answer
	To record collection of accounts receivable
Dec 31	AnswerAccounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashCommon StockCost of Goods SoldInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryNotes ReceivablePrepaid InsurancePrepaid RentProperty, Plant & EquipmentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashCommon StockCost of Goods SoldInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryNotes ReceivablePrepaid InsurancePrepaid RentProperty, Plant & EquipmentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned Revenue		Answer
	To write-off accounts as uncollectible
Dec 31	AnswerAccounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashCommon StockCost of Goods SoldInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryNotes ReceivablePrepaid InsurancePrepaid RentProperty, Plant & EquipmentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashCommon StockCost of Goods SoldInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryNotes ReceivablePrepaid InsurancePrepaid RentProperty, Plant & EquipmentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned Revenue		Answer
	To record allowance for doubtful accounts

b) Calculate the amount of net accounts receivable on the balance sheet as at December 31, 2013. Net Accounts Receivable: Answer