On December 31, 2023, Sheridan Manufacturing Ltd. had a $177,000 balance in its Accounts Receivable and a $8,700 balance in its Allowance for Expected Credit Losses. During 2024, the company made total sales of $890,000, of which $229,000 were cash sales. By the end of the year, Sheridan had received payments of $590,000 from its customers on account. The company also wrote off as uncollectible $11,500 of its receivables when it learned that these customers had declared bankruptcy. The company was subsequently able to recover $5,200 from one of these customers. (Note that this amount is not included in the cash collections noted above.) After grouping its receivables based on credit risk characteristics and estimating the expected rate of credit losses for each group, management estimates that total expected credit losses will be $22,230. Account Titles and Explanation Debit Credit Accounts Receivable (To record sales) Cash (To record cash collected from customers) (To write off accounts receivable) (To reinstate an account that were previously written off) (To record recovery of account that were previously written off) (To recognize the credit losses expense)