Part 2: Accounting for Receivables (5 Marks) 1. Methods of Estimating Bad Debts Khalid Company had the following information as of December 31, 2020. Credit Sales OMR 1,250,000 Accounts Receivable OMR 300,000 Allowance for doubtful accounts credit balance OMR 5,000 Required: a. What journal entry is required under each of the following assumption? 1. An estimate of 2.5% of credit sales is uncollectible. ii. An estimate of 10% of accounts receivable is uncollectible. b. What is the net realizable value of accounts receivable for part i and ii. 2. Aging of Receivables Khalid Company ages its accounts receivable and estimates uncollectible accounts as follows: Age A/R Balance Uncollectible Not due 300,000 2.00% 1-30 days past due 200,000 5.00% 31-60 days past due 150,000 10.00% 61-90 days past due 80,000 20.00% Over 90 days past due 50,000 30.00% 780,000 Required: a. Record the journal entry to estimate bad debts at year-end assuming an allowance balance of OMR 5,000 credit b. Record the journal entry the next year when customer A goes bankrupt and Khalid Company write-off OMR 10,000 receivable related to customer A. c. Record the journal entry when Khalid Company collected OMR 5,000 which was previously written-off accounts of customer A