Innovative Tech Inc. (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $120,000 and estimated that 1/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $97,700, aged as follows: (1) 130 days old, $82,000; (2) 3190 days old, $11,000; and (3) more than 90 days old, $4,700. The average rate of uncollectibility for each age group is estimated to be (1) 11 percent, (2) 22 percent, and (3) 44 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,950 credit balance at December 31. Prepare the December 31 adjusting entry. 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for bad debts as of November 30. Note: Enter debits before credits. Date General Journal Debit Credit November 30 Record entry Clear entry View general journal On December 31, 2017, Extreme Fitness has adjusted balances of $920,000 in Accounts Receivable and $79,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $22,000. a. What amount would the company report as its net accounts receivable on December 31, 2017? b. Prepare the journal entry to write off the accounts on January 2, 2018. c. Assuming no other transactions occurred between December 31, 2017, and January 3, 2018, what amount would the company report as its net accounts receivable on January 3, 2018? Has net accounts receivable changed from December 31, 2017? Complete this question by entering your answers in the tabs below. Req A Req B Reg C1 Reg C2 What amount would the company report as its net accounts receivable on December 31, 2017? Net Accounts Receivable