The December 31, 2017 statement of financial position of the ABC Company included the following information:

Accounts Receivable 112,000 Less: Allowance for Doubtful Accounts 2,240

During the companys fiscal year ending December 31, 2018, the following transactions occurred:

1. Sales on credit 437,300;

2. Collections on accounts previously written off as worthless 230 (Hint: Re-establish the receivable account);

3. Accounts receivable written off as uncollectible 2,290;

4. Collections of accounts receivable 440,500;

5. Bad debts were estimated to be 1,8% of accounts receivable.

Instructions a) Prepare journal entries necessary for ABC Company to record the preceding transactions. b) Prepare an analysis and schedule that shows the amounts of the accounts receivable, allowance for doubtful accounts that will be disclosed on ABCs December 31, 2018 statement of financial position