Assume that Dome Company had the following balances in its receivable accounts on December 31, 1999:

Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $\$ 400,000$

Allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,200 (credit balance)

Transactions during 2000 were as follows:

Gross credit sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $\$ 1,600,000$

Collections of accounts receivable $(\$ 1,560,000$ less cash discounts of $\$ 20,000$ ) . . $1,540,000$

Sales returns and allowances (from credit sales) . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 Accounts receivable written off as uncollectible. . . . . . . . . . . . . . . . . . . . . . . . . 6,000 Balance in Allowance for Bad Debts on December 31, 2000 (based on percent of total accounts receivable)

12,000 1. Prepare entries for the 2000 transactions.

2. What amount will Dome Company report for:

a. Net sales in its 2000 income statement?

b. Total accounts receivable on its balance sheet of December 31,2000 ?