Question 11 (5 marks) Stern Company had the following amounts on its unadjusted trial balance at December 31, 2020: Credit Debit $120,000 Accounts receivable Allowance for doubtful accounts Sales revenue $ 800 940,000 The company uses the percentage-of-sales approach to account for uncollectible accounts. Company experience has shown that bad debts average 2% of sales revenue. REQUIRED: (Answer on this page, below) A. Prepare the December 31 adjusting entry for uncollectible accounts. (2 marks) B. Compute the dollar amount that would appear on the December 31, 2020 balance sheet for Allowance for Doubtful Accounts. (1 mark) C. It is now July 23, 2021 and the company has just received word that one of its customers owing $1,000 will be unable to pay the amount owing because the customer has gone out of business due to financial problems. Give the journal entry to write off the account. (2 marks) PART A: Date Account Debit Credit PART B: PART C: Date Account Debit Credit End of Exam 24