Problem 2 (10 marks) (18 minutes) The following summarized transactions relate to Retail Ltd. for the year ending December 31, 20x2. The company uses the periodic method to account for inventory. Cash sales $ 80,000 Credit sales 720,000 580,000 Collection of credit sales Write-off of uncollectible accounts receivable 22,000 Recovery of previously written off accounts receivable 4,600 The balance in accounts receivable at January 1, 20x2 was a $100,000 debit, and the balance in allowance for doubtful accounts at that date was a $15,800 credit Required Prepare the journal entries to record the activity for Retail, including any year-end adjusting entries, assuming the company uses the balance sheet (accounts receivable) method to estimate bad debt expense. The company estimates that 5% of accounts receivable will ultimately be uncollectible