Question 2 On September 30, Emerson Co. has RM540,250 of accounts receivable. Emerson uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of RM13,750. The following transactions occurred during October a. Sold RM325,000 of merchandise to customers on credit. b. Received RM425,100 cash in payment of accounts receivable. c. Wrote off RM16,700 of uncollectible accounts receivable. d. In adjusting the accounts on October 31, its fiscal year-end, the company estimated that 3% of accounts receivable will be uncollectible. Required: 1. Prepare journal entries to record the following selected October transactions. 2. Show how accounts receivable and allowance for doubtful debts accounts appear on its October 31 statement of financial position