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The December 31, 2020 balance of Mohammad Com had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During

The December 31, 2020 balance of Mohammad Com had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000.

During 2021, the following transactions occurred:

a. sales on account $1,500,000;

b. sales return and allowances $50,000

c. collection from customers $1,250,000;

d. accounts written off $36,000;

e. previously written off accounts of $6,000 were collected.

Instructions:

1. Journalize the 2021 transaction

2. If the company uses percentage --of-sales basis to estimate bad debt expense and anticipates 3% of net sales to be uncollectable, what is the adjusting entry at December 31, 2021.

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