Problem 5-5 At the beginning of current year, Nostalgia Company reported the following information: Accounts receivable 1,500,000 Allowance for doubtful accounts 60,000 The following summary transactions affecting accounts receivable occurred during the current year: Sales - all on account 2/10, 1/15, n/60 7,935,000 Cash received from customers 8,000,000 The cash received from customers included the following: Customers paying within the 10-day discount period 4,410,000 Customers paying within the 15-day discount period 2,475,000 Recovery of accounts written off 15,000 Customers paying beyond the discount period . J Accounts receivable written off as worthless 55, 000 Credit memoranda for sales return 30, 000 Required: a. Prepare journal entries to record the transactions. b. Prepare the adjustment for doubtful accounts if the entity follows the percentage of accounts receivable consistently. c. Determine the net realizable value of accounts receivable at year-end