On December 31, 2021, a trial balance before year-end adjustment of Bulls Ltd. included the following:

Debit Credit

Accounts receivable................................................. $120,000

Allowance for doubtful accounts............................. $730

Credit sales............................................................... 510,000

Credit sales returns and allowances......................... 8,000

The Account receivable ageing on the same date is as follows.

					Days
			Current	30 - 60	61 - 90	91 - 120	>120	Total
AR Balances			$45, 000	$26,500	$15,000	$16,200	$17,300	$120,000
Probability of Collectability			1.00%	5.00%	12.00%	27.00%	55.00%

Instructions

1. Prepare adjusting journal entries assuming that the estimate of uncollectible is determined by using the

AR Ageing method, and (4 marks)

2. Calculate the amount of the net credit sales, (1 mark)
3. Prepare adjusting journal entries assuming that the estimate of uncollectible is determined by using

1% of net credit sales, and (3 marks)

4. Assuming Bulls finally decided on bad debts estimation using the AR ageing method, with proper title and classification, present the partial balance sheet as of December 31, 2021, showing the section of the accounts receivable, (3 marks)

Please answer all parts.