Jaffer Sports Ltd. Accounts Receivable and Bad Debts Assume that you are working as credit manager of Jaffer Sports Ltd. At the end of the financial year ended 30 June 2017, you have gathered the following information about the company's accounts receivable and credit losses during the current year. Net credit sales for the year. 3,000,000 Accounts receivable at the year end. 360,000 Uncollectible accounts receivable: Actually written off during the year. 43,650 "Estimated portion of year - end receivable expected to prove uncollectible (per aging schedule) 18,000" Instruction: Prepare journal entry summarizing the recognition of uncollectible accounts expense for the entire year under each of the following independent assumptions: a) Uncollectible accounts expense is estimated at an amount equal to 1.5% of the net credit sales. b) Uncollectible accounts expense is recognized by adjusting the balance in the Allowance for Doubtful Accounts to the amount indicated in the year - end aging schedule. The balance in the allowance account at the beginning of the current year was 15,000 . (Consider the effect of the write - offs during the year upon the balance in the Allowance for Doubtful Accounts).