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Swiss Supplies showed the following selected adjusted balances at its December 31, 2019. year-end: Accounts Receivable Dec. 31/19 Balance 420,000 Allowance for Doubtful Accounts 19,200 Dec. 31/19 Balance During 2020, the following selected transactions occurred: a. Sales totalled $2,810,000, of which 25% were cash sales (cost of sales $1,813,000). b. Sales returns were $115,000, half regarding credit sales. The returned merchandise was scrapped. c. An account for $31,000 was recovered. d. Several accounts were written off: $33,000. e. Collections from credit customers totalled $1,770,000 (excluding the recovery in (c) above). Part A Required: 1. Journalize transactions (a) through (e). You may find it useful to post your entries to T-accounts for Accounts Receivable and Allowance for Doubtful Accounts. View transaction list View journal entry worksheet No General Journal Credit Transaction a(1) 1 Cash Accounts receivable Sales Debit 702,500 2. 107.500 2810,000 1. Journalize transactions (a) through (e). You may find it useful to post your entries to T-accounts for Accounts Receivable and Allowance for Doubtful Accounts. View transaction list View journal entry worksheet No Transaction a(1) General Journal 1 Debit Credit Cash Accounts receivable Sales 702,500 2,107,500 2.810,000 2 a(2) Cost of goods sold Merchandise inventory 1,813,000 1,813,000 3 b 115,000 Sales returns and allowances Accounts receivable Cash 57,500 57,500 4 c(1) 31,000 Accounts receivable Allowance for doubtful accounts 31,000 5 c(2) 31,000 Cash Accounts receivable 31,000 6 d 33,000 Allowance for doubtful accounts Accounts receivable 33,000 1,770,000 7 0 Cash Accounts receivable 1,770,000 Help Part B Required: 2. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 1% of net credit sales View transaction list Journal entry worksheet

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