Question 3 of 15 - / 12 III View Policies Current Attempt in Progress Links Ltd. has been in business for several years and has the following information for its operations which ended December 31, 2020: 1. Total sales for the year were $3,500,000, of which 60% were on account. 2. The company estimates bad debts to be 4.5% of credit sales. 3. Links Ltd. began the year with $660,000 in accounts receivable and a normal credit to the allowance for doubtful accounts of $81,000. 4. Links Ltd. writes off customer accounts that have been outstanding for more than 120 days. During the year, accounts with a carrying amount of $67,000 reached the 120-day mark and were written off. 5. The company uses a collection agency to try to collect accounts that have been written off. The collection agency was able to collect $27,000 from customers whose accounts had previously been written off. 6. During the year the company collected $1,790,000 of its accounts receivable. Prepare a summary journal entry for the credit sales and journal entries to record the above transactions on the books of Links Ltd. on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record credit sales) (To recognize the bad debts expense) (To write off accounts judged uncollectible) (To reinstate an account that was previously written off) (To record subsequent collection of accounts that were previously written off) (To record collection of accounts receivable) Calculate the Dec. 31, 2020 balances for Accounts receivable and the Allowance for doubtful accounts. Accounts Receivable $ Allowance for Doubtful Accounts $ How would accounts receivable be presented on the statement of financial position at December 31, 2019 and 2020? Links Ltd. Statement of financial position 2020 2019 $ Net Accounts Receivable $ $