ssume that Demron estimates uncollectible accounts as 2% of receivables. Prepare the adjusting entry required on December 31, 2020to estimate uncollectible receivable

Exercise 8-12 Estimating bad debt expense-percentage of receivables LO3 Selected unadjusted account balances at December 31, 2020, are shown below for Demron Servicing. Account Debit Credit Accounts receivable $71, 000 Allowance for doubtful accounts $ 1, 120 Sales (all on credit) 489 , 000 Sales discounts 9 , 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. View transaction list Journal entry worksheet Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2020b. During 2021, credit sales were $632,000 (cost of sales $414,370); sales discounts taken were $13,000; accounts receivable collected were $476,700; and accounts written off during the year totalled $10,800. Prepare the entries to record these transactions. View transaction list Journal entry worksheet Record the credit sales during 2021. Note: Enter debits before credits. Record entry Clear entry View general journal c. Record the adjusting entry required on December 31, 2021, to estimate uncollectible receivables, assuming it is based on 2% of net credit sales. View transaction list Journal entry worksheet Record the estimate for uncollectible accounts. Note: Enter debits before credits. December 31, 2021 Record entry Clear entry View general journal CL Show how accounts receivable would appear on the December 31, 2021 balance sheet. Current assets