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

Account	Debit		Credit
Accounts receivable	$	68,000
Allowance for doubtful accounts			$	1,100
Sales (all on credit)				482,000
Sales discounts		12,000

Required: a. Assume that Demron estimates uncollectible accounts as 4% of receivables. Prepare the adjusting entry required on December 31, 2020 to estimate uncollectible receivables.

b. During 2021, credit sales were $625,000 (cost of sales $409,800); sales discounts taken were $16,000; accounts receivable collected were $586,800; and accounts written off during the year totalled $13,200. 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 4% of net credit sales.

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