Problem 1 Mercantile Limited has the following Accounts Receivable ageing report at December 31, 2019. Mercantile Limited Accounts Receivable Ageing Report December 31, 2019 0-30 days 31-60 days 61-90 days 90+ days A/R Balance 475,000 258,000 109,000 47,500 Estimated Unrecoverable 1% 8% 15% 30% Mercantile has a debit balance of $3,200 in Allowance for Doubtful Accounts on December 31. The company has also determined that one account (M. Davis) cannot be recovered and should be written off. The value of the Davis account is $1,975. Required: 1. Prepare the journal entry to record the estimated bad debt for 2019. 2. Show how accounts receivable will be presented on the December 31, 2019 Statement of Financial Position. 3. Prepare the journal entry to write off the Davis account. 4. On January 30, 2020, M. Davis paid their account in full. Prepare the journal entries to record the payment