On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items:

Account Debit Credit Accounts receivable $2,110,000 Allowance for doubtful accounts 34,000 Sales ($2,940,000 cash sales) $11,760,000

Required:

1.Prepare the adjusting entry needed in Corotel's books to recognize bad debts under each of the following independent assumptions.

prepare journal entry worksheet to Record the estimate for uncollectible accounts

a) Bad debts are estimated to be 2% of credit sales.

b) An analysis suggests that 5% of outstanding accounts receivable on December 31, 2020, will become uncollectible.

2.Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31, 2020 partial balance sheet given the facts in requirement 1(a).

3.Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31, 2020balance sheet given the facts in requirement 1(b).