In 2020, Maxton Company sold its services on credit in the amount of $905,300. Total cash collections during the year were $724,240. The company determined that $4,527 of accounts receivable would not be collected and wrote them off. At the end of 2020, management decided to increase its estimate of bad debt to 1% of credit sales compared to 0.5% from last year due to the amount of accounts receivable that proved to be uncollectible during the year. At the beginning of 2020, the company had $176,900 in accounts receivable and a credit balance of $6,100 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 2020 transactions including sales on account, collection, the write-off and the new allowance amount. To simplify the transactions, all dates will be December 31.1 Date Account Title and Explanation Debit Credit Dec 31 Service Revenue 0 905300 Accounts Payable 905300 To record sales on account Dec 31 Cash Accounts Receivable Dec 31 = 724240 724240 To record collection of accounts receivable Allowance for Doubtful Accounts Accounts Receivable To write-off accounts as uncollectible Dec 31 Bad Debt Expense Allowance for Doubtful Accounts 9053 9053 To write-off accounts as uncollectible Dec 31 Bad Debt Expense Allowance for Doubtful Accounts * To record allowance for doubtful accounts 9053 9053 b) Calculate the amount of net accounts receivable on the balance sheet as at December 31, 2020. Net Accounts Receivable