You are advised to spend 20 minutes on this question

Lancaster company had the following balances at the beginning of 2020

Account receivable	2,348,000
Allowance for doubtful account	12,000

During the year of 2020, the following transactions took place:

1. Total credit sales were 1,200,000

2. The company collected amounts due from customers total of 700,000

3. The company decided that 40,000 will not be collected and were written off

E. Assume that the company estimated that 10% of credit sales will be uncollectible, what is the journal entry to be recorded if the beginning balance of the allowance is debit and what is the cash realizable value in this case