Problem 2 - Accounts Receivable and Bad Debt Use the data below to work the following problem. Data for LC, Inc includes: Accounts Receivable 400,000 Allowance for Doubtful Accounts 800 (credit) Net Credit Sales 700,000 Prepare the journal entry to record bad debt assuming the company uses 1.75% of net credit sales as its estimate. Prepare an Income Statement & Balance Sheet showing the related accounts and their balances. Prepare the journal entry to write off J. Jones' $1200 account as uncollectible. After recording the above entry, what is the new balance in Allowance for Doubtful Accounts? The remaining balance in the allowance account prior to end of year adjusting entries means what? What would an abnormal balance in the allowance account indicate? What does Net Realizable Value (Net Receivables) mean