Question 1 - Worth 9 marks Tonka Toys showed the following selected adjusted balances at its December 31, 2019, year-end: Accounts Receivable - $470,000 and Allowance for Doubtful Accounts -credit balance of $13,500. 1 During 2020, the following selected transactions occurred: a. Sales totaled $2,100,000 of which 75% were credit sales (cost of sales $970,000). b. Sales returns were $35,000, all regarding credit sales. The returned merchandise was scrapped. c. An account for $35,000 was recovered. d. Several accounts were written off, the total was $65,000. e. Collected accounts receivable of $1,750,000 (excluding the recovery in c) above). Sales discount of $27,000 were taken. Required 1. Prepare the December 31, 2020 adjusting entry to estimate bad debts, assuming uncollectible accounts are estimated to be 9% of net credit sales. 2. Show how accounts receivable will appear on the December 31, 2020 balance sheet. 3. Prepare the December 31, 2020, adjusting entry to estimate bad debts, assuming uncollectable accounts are estimated to be 5% of outstanding receivables. 4. Show how accounts receivable will appear on the December 31, 2020 balance sheet