Problem 7-19A Determination of account balances and preparation of journal entries-percent of receivables allowance method of accounting for uncollectible accounts LO 7-2 The following information is available for Quality Book Sales' sales on account and accounts receivable: Accounts receivable balance, January 1, Year 2 Allowance for doubtful accounts, January 1, Year 2 Sales on account, Year 2 Collection on accounts receivable, Year 2 $ 80,000 5,010 565,000 571,000 After several collection attempts, Quality Book Sales wrote off $3,040 of accounts that could not be collected. Quality Book Sales estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Required a. Compute the following amounts: (1) Using the allowance method, the amount of uncollectible accounts expense for Year 2. (2) Net realizable value of receivables at the end of Year 2. Amount of uncollectible accounts Net realizable value b. Record the general journal entries to: (1) Record sales on account for Year 2. (2) Record cash collections from accounts receivable for Year 2. (3) Write off the accounts that are not collectible. (4) Record the estimated uncollectible accounts expense for Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record sales on account for Year 2. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record cash collections from accounts receivable for Year 2. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the entry for uncollectible accounts written-off. Note: Enter debits before credits. Event General Journal Debit Credit 3 Record entry Clear entry View general journal View transaction list Journal entry worksheet