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

Account Debit Credit

Accounts receivable $ $72,000$

Allowance for doubtful accounts $ $1,140$

Sales $($all on credit$)498,000$

Sales discounts $10,000$

Required:

a$.$ Assume that Demron estimates uncollectible accounts as $3\%$ of receivables. Prepare the adjusting entry required on December $31,2023,$ to estimate uncollectible receivables.

b$.$ During $2024,$ credit sales were $$644,000($cost of sales $$422,240)$; sales discounts taken were $$14,000$; accounts receivable collected were $$513,400$; and accounts written off during the year totalled $$11,600.$ Prepare the entries to record these transactions.

c$.$ Record the adjusting entry required on December $31,2024,$ to estimate uncollectible receivables, assuming it is based on $3\%$ of receivables.

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