The relevant portions of the trial balance for the Floral & Hardy Design Studio show the following balances as of December 31, 2022:

Sales	$985,687
Sales Returns and Allowances	$26,312
Sales Discounts	$27,546
Accounts Receivable	$81,658
Allowance for Doubtful Accounts	$3,807 (Irregular balance)

You may assume all closing entries were properly prepared as of December 31, 2022.

The relevant portions of the trial balance for Floral & Hardy Design Studio show the following balances as of December 31, 2023:

Sales	$1,025,694
Sales Returns and Allowances	$31,215
Sales Discounts	$23,729
Accounts Receivable	$76,877

QUESTIONS:

Based on its past history, Floral & Hardy Design Studio expects 4.1% of its net sales will become uncollectible. What adjusting entry, if any, should it make as of December 31, 2022? (3 points)

In 2023, Floral & Hardy Design Studio properly switches to the percentage of accounts receivable method. An aging of accounts receivable indicates $36,413 is expected to become uncollectible. What adjusting entry, if any, should it make as of December 31, 2023? (2 points)

When Floral & Hardy Design Studio prepares its balance sheet as of December 31, 2023, what amount would it show as net accounts receivable? (1 point)