(Basic journal entries, LO 3) Prepare the journal entries necessary to record the following transactions and economic events for Sahali Ltd. (Sahali):

a. During 2005 Sahali had cash sales of $175,000 and credit sales of $625,000.

b. During 2005 $405,000 of accounts receivable were collected.

c. Management estimated that 5% of credit sales would not be collected.

d. During 2006 Sahali wrote off $34,000 of accounts receivables.