Koko Company has the following account balances on December 31, 2020: Sales $700,500 (all on account) Sales Returns and Allowances - $6,200 Sales Discounts - $4,400 Inventory - $26,800 Allowance for Doubtful Accounts - $2,200 (debit balance) Freight Out $18,500 Assuming Koko uses the allowance method of accounting for bad debts, and they estimate 4% of net credit sales to be uncollectible. 1. Record the necessary entry at year-end to account for bad debts. 2. Show the balance sheet presentation of the accounts receivable on December 31, 2020.