Selected unadjusted account balances at December $31,2020,$ are shown below for Demron Servicing.

Account Debit Credit

Accounts receivable $ $62,000$

Allowance for doubtful accounts $ $980$

Sales $($all on credit$)428,000$

Sales discounts $6,000$

Required:

a$.$ Assume that Demron estimates uncollectible accounts as $2\%$ of receivables. Prepare the adjusting entry required on December $31,2020$ to estimate uncollectible receivables.

b$.$ During $2021,$ credit sales were $$553,000($cost of sales $$362,580)$; sales discounts taken were $$10,000$; accounts receivable collected were $$366,600$; and accounts written off during the year totalled $$8,400.$ Prepare the entries to record these transactions.

c$.$ Record the adjusting entry required on December $31,2021,$ to estimate uncollectible receivables, assuming it is based on $2\%$ of net credit sales.

d$.$ Show how accounts receivable would appear on the December $31,2021$ balance sheet.