On December 31, 2020, Packers Corp.'s unadjusted trial balance includes the following balances:
				Dr.	Cr.
Accounts Receivable				$140,000
Allowance for doubtful accounts					$2,000
Total sales					$950,000
Sales return and allowances				$35,000

Total sales include $75,000 of cash sales.

Instructions

a) Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be:

(1) 6% of gross accounts receivable (4 marks)

(2) 0.75% of net sales (4 marks)

b) Assuming Packers observed the 6% of gross account receivable option, with proper title and classification, provide a detailed presentation of accounts receivable on Packers statement of financial position as of December 31, 2020. (2 marks)