Sig Co. began operations on January 1, 20X7. On December 31, 20X7, Sig provided for uncollectible accounts based on 1% of annual credit sales. On january 1, 20X8, Sigma changed its method of determining its allowance for uncollectible accounts by applying certain percentages to the accounts receivable aging as follows: Days past invoice date-------------------------------------------Percent deemed to be uncollectible _____0-30______________________________________________________1_____ _____31-90_____________________________________________________5_____ _____91-180__________________________________________________ 20 _____over 180_________________________________________________80 In addition, sigma wrote off all accounts receivable that were over one year old. The following additional information relates to the years ended December 31, 20X8, and 20X7: --------------------------------------------------------------------20X8-------------------------------------------20X7 Credit Sales-------------------------------------------$3,000,000---------------------------------------$2,800,000 Collections----------------------------------------------2,915,000-----------------------------------------2,400,000 Accounts written off-------------------------------------27,000-----------------------------------------------None Recover of accounts Previously written off-------7,000-----------------------------------------------None --------------------------------------------------------------------20X8-------------------------------------------20X7 Days past invoice date at 12/31 0-30__________________________________________300,000______250,000 31-90__________________________________________80,000________90,000 91-180_________________________________________60,000________45,000 Over 180_______________________________________25,000________15,000 Reqiored: 1. Prepare all journal entries for 20X7 and 20X8 2. Post to "T" accounts 3. Report your answers in the following Chart Bad Debt Expense__________________________________Allowance for bad debts Income Statement______________________________________Balance Sheet 20X7 ______________-----------------------------------------------_____________________ 20X8_______________---------------------------------------------------_____________________