Salem Corp. began the year with the following account balances corresponding to its receivables. Salem Corp. uses the net method for recording cash discounts. Accounts Receivable @ 1/1/x8: \$389,000 Allowance for Doubtful Accounts @ 1/1/x8: \$41,000 credit balance Allowance for Sales Returns @ 1/1/x8: \$36,000 credit balance. During the year, the following transactions occurred with respect to the receivables. - Salem Corp. recorded credit sales of $1,400,000 during the year. discount window for the full price and resulted in $1,380 of sales discounts forfeited. - $41,000 of credit sales resulted in returns during the year. Salem estimates sales returns at 1.5% of credit sales. - Salem wrote-off $37,000 of accounts during the year. The company reinstated $6,000 of accounts and collected $4,000 of these reinstated accounts. 1. Provide journal entries for all the above transactions that would have occurred during the period. Provide effects to A/L/NI for each journal entry. 3. Determine the estimate of sales returns at the end of the period and provide a journal entry to record it. Provide the impact to A/L/NI. 4. Determine net credit sales for 208 and calculate bad debt expense by the income statement method assuming a 4% estimate. 5. Determine the balances of Salem's Accounts Receivable, Allowance for Doubtful Accounts and Allowance for Sales Returns (use the information as calculated in \#2). 6. Determine receivables as reported on the balance sheet at 12/31/x8 incorporating your answer to \#2 for bad debt expense. 7. Calculate the accounts receivable turnover ratio and the average number of days to collect from the information above and using your bad debt estimate from \#2