Prepare journal entries to record the following transactions that occurred for this company in its 3rd year of operations. Year 3 sales: $7,500,000 on account, $490,000 cash. Year 3 collections of accounts receivable: $6,700,000. Year 3 write-offs: $128,000 Year 3 reinstatements and subsequent collections of reinstated accounts: $84,000 12/31/Y3: 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. Calculate the NRV after each transaction listed above.