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Exercise 3 out of 8: Bad Debt-Income Statement Approach-Indirect Write Off (8 points) Footlocker has a beginning balance of Account Receivable of $22.000.000 with a net realizable value of $24.480.000. During this year the company was able to collect $6.500.000 from the sales on credit done before and wrote off a bad debt of $75.000. At the end of the year the company recovered $4.000 which was initially written off. The sales on credit for this year were $20.000.000 from which 5% were estimated to be not recoverable. Please prepare the journal entry for estimated non recoverable amount and calculate the net realizable value of Account Receivable at the end of the year. Take into consideration that the company uses the Income Statement Approach when calculating the estimated bad debt