Peridot Audio Systemics manufactures audio and visual systems for installation at conference centers and small businesses across the Pacific Northwest. Peridot's sales are only on credit. Peridots lead accountant provided the following Sales and Accounts Receivable data for the year-ended December 31: Accounts Receivable, January 1 Sales (all on credit) Cash Collections $500,000 $3,800,000 $3,400,000 Allowance for Doubtful Accounts, January 1 (credit) 50,000 Account Defaults During the Year $250,000 Show your work (calculations), if possible, to potentially receive partial credit. 1. Determine the balance of Accounts Receivable at December 31. 2. Assume Peridot Audio Systemics estimates bad debts based on the aging method. Estimate the ending balance in the Allowance for Doubtful Accounts at December 31 using the information below: A/R Age Estimated Default Amount Estimated Default Amount Current 1-30 Days Past Due 31-60 Days Past Due Over 60 Days Past Due 1% 3% 5% 10% $300,000 $200,000 $100,000 $50,000 3. Continue to assume Peridot Audio Systemics estimates bad debts based on the aging method (what amount would the company record as bad debt expense at December 31? 4. What is the net realizable value of the receivables to be reported on Peridot's Balance Sheet at December 31 if we continue to assume Narwhal is using the aging method? 5. Instead now assume Peridot Audio Systemics estimates bad debts at 6% of credit sales. What amount would the company record as bad debt expense at December 31? 6. Continuing to assume that Peridot now estimates bad debts based on 6% of credit sales, what journal entry would Narwhal prepare to record bad debt expense for the year (show the debit, credit, and dollar amount in proper journal entry form)?