Swiss Supplies showed the following selected adjusted balances at its December 31, 2019. year-end: Accounts Receivable 420,000 Dec. 31/19 Balance Allowance for Doubtful Accounts 19,200 Dec. 31/19 Balar During 2020, the following selected transactions occurred: a. Sales totalled $2,810,000, of which 25% were cash sales (cost of sales $1,813,000). b. Sales returns were $115,000, half regarding credit sales. The returned merchandise was scrapped. c. An account for $31,000 was recovered. d. Several accounts were written off: $33,000. e. Collections from credit customers totalled $1,770,000 (excluding the recovery in (c) above). Part A Required: 1. Journalize transactions (a) through (e). You may find it useful to post your entries to T-accounts for Accounts Receivable and Allowance for Doubtful Accounts. Answer is complete and correct. No General Journal Debit Credit Transaction a(1) 782,500 1 Cash Accounts receivable Sales OOO 2,107,500 2,810,000 1,813,000 2 n(2) Cost of goods sold Required: 2. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 1% of net credit sales No Date December 31 Answer is complete and correct. General Journal Bad debt expense Allowance for doubtful accounts Credit 1 Dobit 20,500 20,500 3. Show how accounts receivable will appear on the December 31, 2020, balance sheet. Answer is complete and correct. Partial Balance Sheet Assets $ Current assets: Accounts receivable Less: Allowance for doubtful accounts 667,000 37,700 $ 629,300 4. What will bad debt expense be on the income statement for the year ended December 31, 2020? Answer is complete and correct. Bad debt expense $ 20,500 Part C (independent of Part B) Required: 5. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 3% of outstanding receivables. Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 Dec 31 19.080 Bad debt expense Allowance for doubtful accounts 19,080 6. Show how accounts receivable will appear on the December 31, 2020, balance sheet. Answer is complete but not entirely correct. Partial Balance Sheet Assets Current assets: Accounts receivable $ 667,000 Less: Allowance for doubtful 37,210 accounts $ 629,790 7. What will bad debt expense be on the income statement for the year ended December 31, 2020? Answer is complete but not entirely correct. Bad debt $ 20,010 expense