Styles RECEIVABLES - ALLOWANCE METHODS Delaware Desk Company sells two models of desks to customers across the country. They have two models: the stand-up desk and the sit-down desk. Delaware Desk Company had many transactions occur during the month of March, including the following items: A. Total gross sales of $600,000 of which $450,000 were on account and $150.000 were in cash B. Sales discounts of $6,000 taken by customers for quick payment C. Cash collected from customers relating to sales on account $275,000 D. Sales on account written off during the month: $2,000 E. Collection of a customer account that was written off in January: $2,500 1. Record these transactions in the t-accounts below assuming it uses an allowance method to record uncollectible accounts. Find the ending balance in Accounts Receivable and the Allowance for Doubtful Accounts account. ASSETS LIABILITIES + EQUITY Sales Revenue Accounts Receivable BAL 80,000 Cash Allowance for Doubtful Accounts 4,000 BAL 2. Assume that Delaware Desk Company uses the Percentage of Receivables method. Historically they estimate 4% of receivables will become uncollectible. Prepare the entry below for this transaction at the end of March