Prepare journal entries for the following transactions that occurred for a company in its first year of operations.

• Year One sales: $2,500,000 total, of which $2,200,000 were sales on account.
• Year One collections of accounts receivable: $1,430,000.
• Year One write-offs: $26,000
• 12/31/Y1: Year-end adjustment to record estimated uncollectible accounts at 4% of credit sales.

Directions: Prepare all journal entries, post to accounts, and show the year-end balance sheet presentation of accounts receivable.