P8-6A. Allowance Meth Record the foregoing transactions and adjustments in general journal form. avance Method The Irvine Company, which has been in business for three years, makes all of its sales on account and does not offer cash discounts. The firm's credit sales, collections from custom- ers, and write-offs of uncollectible accounts for the three-year period are summarized below: Year Sales Accounts Written Off 2018 2019 2020 $600,000 770,000 860,000 Collections $574,000 740,000 814,000 $4,200 6,900 7,300 18d720P Allama fo-870 Sono ) fire-tea) not saffient fonds Chich are not lashon Cash equivalents Obicat Q76 1 Recerable 2009 for 7006 le december el B Required a. If the Irvine Company had used the allowance method of recognizing credit losses and he vided for such losses at the rate of 1.3 percent of credit sales, what amounts in Account able and the Allowance for Doubtful Accounts would appear on the firm's balance sheet end of 2020? What total amount of bad debts expense would have appeared on the firm'sing statement during the three-year period? Comment on the use of the 1.3 percent rate to provide for credit losses in part a. on the Dallee Commons b