On April 30, 2020, High Peaks Party Planners (HPPP) had a $38,000 balance in Accounts Receivable and a $3,500 credit balance in Allowance for Uncollectible Accounts. During May, HPPP made credit sales of $71,000. May collections on account were $61,000, write-offs of uncollectible receivables totalled $2,100, and an account of $800 was recovered. Bad debt expense is estimated to be $4,970. Requirements 1. Determining bad debt expense by using the allowance method is management's estimate of uncollectible accounts and not an accurate measurement. Why not wait until a company finds out which customers can't pay and write the accounts receivable off as they occur? 2. If the allowance method is not used to estimate uncollectible accounts, what effect would this have on accounts receivable (balance sheet) and bad debt expense (income statement)? Requirement 2. If the allowance method is not used to estimate uncollectible accounts, what effect would this have on accounts receivable (balance sheet) and bad debt expense (income statement)? (Leave any unused cells blank.) Calculate the company's balance of accounts receivable by entering the beginning balance and the adjusting entries in the following T-account. Post the beginning balance first and then post the adjustments. Accounts Receivable