QUESTION 3 (21 marks; 38 minutes): Accounting for Receivables and Bad Debts Expense This problem consists of two (2) independent parts. Show details of all calculations. Part A The December 31, 2012 statement of financial position of Howson Limited reported Trade Accounts Receivable of $450,000 and a credit balance in Allowance for Doubtful Accounts of $45,000. During 2013, the following transactions occurred: - Service revenue billed on account, $1,500,000 (terms, net/60) Collections from customers, $1,300,000 - Accounts written off as uncollectible, $37,000 - Collection of accounts previously written off, $4,000. Required 1. Record the 2013 transactions in journal entry form. (5 marks) 2. The company uses the aging of receivables method to estimate bad debts expense and determined that uncollectible accounts are expected to be 5% of the balance of trade accounts receivable. Show the adjusting journal entry at December 31, 2013. (6 marks) 3. Show, in proper form, how trade accounts receivable would be presented on the company's comparative statement of financial position as at December 31, 2013. (4 marks)