Links Ltd. has been in business for several years and has the following information for its operations which ended December 31, 2020: 1. 2. . 3. 3. Total sales for the year were $3.480,000, of which 60% were on account The company estimats bad debts to be 4.5% of credit sales. Links Ltd. began the year with $660,000 in accounts receivable and a normal credit to the allowance for doubtful accounts of $83,000. Links Ltd, writes off customer accounts that have been outstanding for more than 120 days. During the year, accounts with a carrying amount of $81,000 reached the 120-day mark and were written off. The company uses a collection agency to try to collect accounts that have been written off. The collection agency was able to collect $24,000 from customers whose accounts had previously been written off. 4. 5. 6. . During the year the company collected $1,830,000 of its accounts receivable. Account Titles and Explanation Debit Credit Accounts Receivable 2088000 Sales Revenue 2088000 (To record credit sales) Bad Debts Expense 93960 Allowance for Doubtful Accounts 93960 (To recognize the bad debts expense) Allowance for Doubtful Accounts 81000 Accounts Receivable 81000 (To write off accounts judged uncollectible) Accounts Receivable 24000 Allowance for Doubtful Accounts 24000 (To reinstate an account that was previously written off) Cash 24000 Accounts Receivable 24000 (To record subsequent collection of accounts that were previously written off) Cash 1830000 Accounts Receivable 1830000 Calculate the Dec. 31, 2020 balances for Accounts receivable and the Allowance for doubtful accounts Accounts Receivable $ Allowance for Doubtful Accounts $