transactions:

A$.$Sales of $$182,000($ $$159,000$ on$$ account; $$23,000$ for$$ cash$).$ Ignore Cost of Goods Sold.

b$.$Collections on$$ account, $$135,000.$

c$.$Write$-$offs of uncollectible$$ receivables, $$2,500.$

Requirements: $1.$Journalize Purple Mountain Clothing$\text{'}$s transactions that occurred during January. The company uses the allowance method.

$2.$Post Purple Mountain Clothing$\text{'}$s transactions to the Accounts Receivable and Allowance for Bad Debts$$ T$-$accounts.

$3.$Journalize Purple Mountain Clothing$\text{'}$s adjustment to record bad debts expense assuming Purple Mountain Clothing estimates bad debts as $1\%$ of credit sales on January $31,2015.$ Post the adjustment to the appropriate$$ T$-$accounts.

$4.$Show how Purple Mountain Clothing will report net accounts receivable on its January $31,2025,$ balance sheet.