Luxton Supplies showed the following selected adjusted balances as its December 31, 2004 year-end: Accounts Receivable Dec 31/04 Balance 249,000 Allowance for Doubtful Accounts 8,340 Dec 31/04 Balance During the year 2005, the following selected transactions occurred: a) Sales totaled $1,480,000 of which 20% were cash sales (cost of sales $902,000) b) Sales returns and allowances were $57,000, half regarding credit sales c) An account for $12,000 was recovered d) Several accounts were written off; $19,500 e) Collections from credit customers totaled $940,000 (excluding the recovery in (c) above) Part A Required: 1. Journalize the above transactions. 2. Prepare the December 31, 2005 adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 1.5% of net credit sales. 3. Show how the accounts receivable will appear on the December 31, 2005 balance sheet. Part B Required: (independent of above) 1. Prepare the December 31, 2005, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 3% of outstanding receivables. 2. Show how the accounts receivable will appear on the December 31, 2005 balance sheet.