Selected unadjusted account balances at December $31,2023,$ are shown below for Demron Servicing.

$\backslash$table$[[$Account$,$Debit,Credit$],[$Accounts receivable,$$63,000,],[$Allowance for doubtful accounts,$$,1,000],[$Sales $($all on credit$),7,000,43,000],[$Sales discounts,,$]]$

Required:

a$.$ Assume that Demron estimates uncollectible accounts as $2\%$ of receivables. Prepare the adjusting entry required on December $31,2023,$ to estimate uncollectible receivables.

Journal entry worksheet

$1$

Record the estimate for uncollectible accounts.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2023,,,]]$

b$.$ During $2024,$ credit sales were $$565,000($cost of sales $$370,450)$; sales discounts taken were $$11,000$; accounts receivale collected were $$403,300$; and accounts written off during the year totalled $$9,200.$ Prepare the entries to record these transactions.

Journal entry worksheet

$1$

$2$

$3$

$4$

Record th$$ credit sales during $2024.$

Note: Enter debits before credits.

$\backslash$table$[[$Year$,$General Journal,Debit,Credit$],[2024,,,],[,,,]]$

c$.$ Record the adjusting entry required on December $31,2024,$ to estimate uncollectible receivables, assuming it is based on $2\%$ of receivables:

Journal entry worksheet

$1$

Record the estimate for uncollectible accounts.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2024,$:$.,,],[,7,,],[,7,,],[,7,,],[,7,,],[.,>,,]]$

d$.$ Show how accounts receivable would appear on the December $31,2024,$ balance sheet.

$\backslash$table$[[$Partial Balance sheet$],[$Assets$,,],[$Current assets:,,$],[,,],[,,]]$