Wilcox Mills is a manufacturer that makes all sales on 30 -day credit terms. Annual sales are approximately $30 million. At the end of year 1, accounts recelvable were presented in the company's statement of financial position as follows. During year 2,$185,000 of specific accounts recelvable were written off as uncollectible, Of these accounts written off, receivables totaling $16,000 were subsequently collected. At the end of year 2 , an aging of accounts receivable indicated a need for a $249,000 allowance to cover possible fallure to collect the accounts currently outstanding. Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end. Required: a. Prepare the following general journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first occount field.) 1. One entry to summarize all accounts written off against the Allowance for Impairment Accounts during year 2 2. Entries to record the $16,000 in accounts receivable that were subsequently collected. 3. The adjusting entry required at December 31 , year 2 , to increase the Allowance for Impairment Accounts to $249.000, b. Notice that the Allowance for Impaliment Accounts was only $80,000 at the end of year 1 , but uncollectible accounts during year 2 totaled $150,000 ( $165,000 less the $15,000 reinstated). Do these relationships appear reasonable, or was the Allowance for Impaiment Accounts greatly understated at the end of year 1 ? Explain