Majertic Equipment Sales Company, which sells only on account, had a $$122,000$ balance in its Accounte Receivable and a $5,700$

credit balance in its Allowence for Doubtful Accounts on December $31,2019.$ During $2020,$ the companys sales of equipmant ware:

$$833,000$ and its total cash collections from customers vere $$795,000.$

Durung the vear, the company concluded thet customers with accounts totallina S$6\mathrm{.}100$ would be unable to payand wrote these

receivables off. However, one of these customers subsequently made a pament of S$850.($Note that this amount is not included in the

esh collections noted above$)$ At the and of $2020,$ manegement decided thet itwould use an estimate for bad debtes of $1\%$ of its credit

sales.

Prepare thejournal entries to record all the $2020$ transactions including the adjustment for bad debts expanse at year end.

b$.$ Show how the accounts receivable section of the statement of financial position at December $31,2020,$ would be presented.

C$.$ What amount of bad debts expense would appear in the statement of income for the year ended December $31,2020?$