PixelTech Solutions Ltd had the following balances at the beginning of 2021:

• Accounts Receivable: £30,000
• Allowance for Doubtful Accounts: £2,500

During 2021, the following transactions occurred:

• Credit sales: £250,000
• Collections from customers: £200,000
• Write-offs of uncollectible accounts: £2,000
• Estimated uncollectible accounts for 2021: 3% of credit sales

Requirements:

1. Prepare journal entries for the transactions related to accounts receivable and bad debts.
2. Calculate the ending balance in the Allowance for Doubtful Accounts.
3. Determine the net realizable value of accounts receivable at the end of 2021.