Problem #2 The December 31, 2016 statement of financial position of Rojo Company Limited has Accounts Receivable of $450,000. The company uses the percentage receivable basis to estimate bad debt expense and determines the uncollectible accounts are estimated to be 5% of accounts receivable. The December 31, 2016 adjusting entry to recognize bad debt expenses has already been made. During 2017 the following transactions occurred: service revenue billed on account, $1,500,000; collections from customers, $1,300,000; accounts written off $27,000; previously written off accounts of $4,000 were collected. (Hint: Use a T account to track A/R and ADA) Instructions (a) Record the 2017 transactions. (5 marks) (b) What is the adjusting entry at December 31, 2017? (4 marks) (c) What is the NRV of the accounts receivable on December 31, 2017. (1 mark)