Problems (18%) Problem 1 Falcon Flyers, Inc. reported the following on its December 31, 2019 balance sheet (000's omitted): Accounts Receivable, net of allowance for doubtful accounts of S7,440 $55,060 The company makes its adjusting entry for bad debts at the end of the year. During 2020, cash collections were $702,400. In addition, $19,700 in accounts receivable were written off and $4 was collected from an account written off in 2017. An aging of accounts receivable reveals the following: Age Estimated % Group Amount Uncollectible 15,750 4% 10,500 10% 61.90 5,250 50% 91-120 2,800 80% 35,000 Show your work and highlight your answer. T-accounts are included above if needed. current 31-60 60% 121+ 700 A. What were credit sales during 2020? The next two questions are independent of each other. B. If the company records bad debts based on the aging analysis, what is the 12/31/20 adjusting entry? NRV of A/R? Show your work and highlight your answers. Adjusting Journal Entry: Net Realizable Value of Accounts Receivable 12/31/20: C. If the company records bad debts as 2.5% of credit sales, what is the 12/31/20 adjusting entry? NRV of A/R? Show your work and highlight your answers Adjusting Journal Entry: Net Realizable Value of Accounts Receivable 12/31/20: d States