PART IV Accounts Receivable, bad debts, and allowance for bad debts 10 Points The accounts receivable balance is $8,600 (debit). The allowance for bad debts account has a $1,200 credit balance and appear below. Prepare journal entries and post them to the accounts the following: 1) The company had $235,000 in credit sale during the year. 2) The company collected $222,000 cash from credit sales made late last year and during the current year. 3) The company wrote off $4,600 of accounts receivable during the year. 4) Bad debt expense for the year was estimated to be %5,375.