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Selected unadjusted account balances at December 31,2023, are shown below for Demron Servicing. ...

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Accounting

Selected unadjusted account balances at December 31,2023, are shown below for Demron Servicing.
Account Debit Credit
Accounts receivable $ 72,000
Allowance for doubtful accounts $ 1,140
Sales (all on credit)498,000
Sales discounts 10,000
Required:
a. Assume that Demron estimates uncollectible accounts as 3% of receivables. Prepare the adjusting entry required on December 31,2023, to estimate uncollectible receivables.
b. During 2024, credit sales were $644,000(cost of sales $422,240); sales discounts taken were $14,000; accounts receivable collected were $513,400; and accounts written off during the year totalled $11,600. Prepare the entries to record these transactions.
c. Record the adjusting entry required on December 31,2024, to estimate uncollectible receivables, assuming it is based on 3% of receivables.
d. Show how accounts receivable would appear on the December 31,2024, balance sheet.

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