Question #2-Accounting for Bad Debts_..25 marko Xach Company had the following Account balances on January 1, 2017 Accounts Receivable $220,000 (Dr) $.65,000 (Cr) Allowance for doubtful account Yach Company had the following summary transactions during 2017: 1. 2. 3. Total Sales for 2017 amounted to $1,500,000, 80% of which were on account. The Collections during year totaled $1,150,000 $63,000 were written-off as uncollected during the year Yach Company uses the Allowance method for Bad Debt Expense and the bad debt expense is estimated to be 2.5% of all Acc. Receivables Required: 1. Prepare Journal entry to record Xach Company Bad Debt Expense and the Write-offs under the Allowance Method 2. Determine the Bad Debt Expense for 2017. 3. Determine the Net Accounts Receivable balance on December 31, 2017 4. Assume after the above entries the Auditor discovered an additional $2,500 should be written off.m.no adjustment was made....So.... how will the following items of Xach Company be affected (ie. for items below.... Increased, Decreased, No Change) by this? a. Bad Debt Expense for 2017. b. Accounts Receivable on December 31,2017. c. Net Accounts Receivable on December 31, 2017