Problem 1 Aging Accounts Receivable (50 points) On September 30, 2007 (the end of tis fiscal year), the Lufkin Corporation reported accounts receivable of $331,750 and allowance for doubtful accounts of $16,700. During fiscal year 2008 the following transactions occurred: Credit sales Collections on accounts receivable Accounts receivable written off $2,017,800 1,956,000 16,200 On September 30, 2008, an aging of the accounts receivable balance indicated the following: Age Amounts Estimated Percentage Under 30 days $169,250 0.80% 30-90 days 100,000 1.6 91-180 55,900 5.0 181-360 38,200 15.0 Over 360 days 14,000 40.0 $377,350 Required: 1. Prepare the journal entries necessary to record the credit sales, collections on account, write-off accounts receivable. 2. What is Lufkin's September 30, 2008, balances in Accounts Receivable and in its Allowance for Doubtful Accounts and how will they be disclosed on the September 30, 2008, balance sheet?