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.