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

AccountDebitCredit Accounts receivable$77,000 Allowance for doubtful accounts $1,240 Sales (all on credit) 543,000 Sales discounts 15,000

Required: a. Assume that Demron estimates uncollectible accounts as 5% of receivables. Prepare the adjusting entry required on December 31, 2023, to estimate uncollectible receivables.

b. During 2024, credit sales were $704,000 (cost of sales $461,590); sales discounts taken were $19,000; accounts receivable collected were $696,900; and accounts written off during the year totalled $15,600. 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 5% of receivables.

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