PART V(60 POINTS) On January 1 of the current year, Neptune, Inc. had the following accounts on its books:

Accounts Receivable	$240,000	(debit)
Allowance for Doubtful Accounts	8,000	(credit)

Required:

1. Prepare general journal entries for the following transactions that occurred during the year: a. During this year, credit sales were $1,200,000. b. Collections on account were $1,160,000. c. Wrote off N. Purcells account, $6,800.

d. Wrote off J. Steins account, $2,400.

e. Stein, who is in bankruptcy, paid $800 in final settlement of the account written off in transaction (d). This amount is not included in the $1,160,000 collections.

f. On December 31, estimated the years bad debts expense at 1% of credit sales.

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the year-end balance sheet. Suggestion: Post the above transactions and January 1 balances to T-accounts for Accounts Receivable and Allowance for Doubtful Accounts.