Ray$$s GamePlace sells all the hottest gear and video games. On January $1,20$X$7,$ Ray$$s had the following account balances:

Accounts receivable $27000$ less allowance for doubtful accounts $4000$ equals net accounts receivable $23000$

During $20$X$7,$ Ray$$s wrote off $$3,000$ in uncollectible accounts. Make this journal entry.

During $20$X$7,$ Ray$$s made credit sales of $$253,000$ and collected $$124,000$ of accounts receivable. Record these journal entries.

At the end of the year, Ray$$s determines that approximately $4$ percent of its ending accounts receivable balance will not be collected. Ray$$s uses the percentage of receivables method of calculating bad debts. Make the necessary journal entry.

Show how the net accounts receivables balance would be reported on the balance sheet.