On December 31 of last year, the balance sheet of Marzano Company had Accounts Receivable of LO 4 Percentage of Net Sales Method 298,000 and a credit balance in Allowance for Uncollectible Accounts of 20,300. During the current year, the company's records included the following selected activities: sales on account, 1,195,000; sales returns and allowances, 73,000 ; collections from customers, \(1,150,000\); accounts written off as worthless, 16,000; and written-off accounts unexpectedly collected, 2,000 . In the past, the company had found that 1.6 per cent of net sales would not be collected.

REQUIRED 1. Open ledger accounts for the Accounts Receivable controlling account (112) and Allowance for Uncollectible Accounts (113). Then enter the beginning balances in these accounts.

2. Prepare separate journal entries to record in summary form the five activities listed above.

3. Give the general journal entry on December 31 of the current year to record the estimated uncollectible accounts expense for the year.

4. Post the appropriate parts of the transactions in 2 and 3 to the accounts opened in 1.