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1. The Accounts Receivable balance for River Corporation is$400,000 as of January 31, 2020. Before calculating and recordingJanuary 2020 Bad Debt Expense, the Allowance for Doubtful Accountshas a credit balance of $5,000. Credit sales for January 2020 are$4,000,000, and over the past several years, 1% of credit saleshave proven uncollectible. An aging of River Corporation’s AccountsReceivable results in a $43,000 estimate for the Allowance forDoubtful Accounts as of January 31, 2020. Part A: PERCENT OF SALESMETHOD Assume that River Corporation uses the percent of salesmethod to estimate future uncollectible accounts. a. What adjustingentry does River make to record January 2020 Bad Debt Expense?Accounts Receivable b. What is the “Accounts Receivable, net” onRiver’s January 31, 2020 Balance Sheet? c. What is “Bad DebtExpense” on River’s January 2020 Income Statement? Part B: ANALYSISOF RECEIVABLES METHOD Assume that River Corporation instead usesthe analysis of receivables method to estimate future uncollectibleaccounts. a. What adjusting entry does River make to record January2020 Bad Debt Expense? b. What is the “Accounts Receivable, net” onRiver’s January 31, 2020 Balance Sheet? c. What is “Bad DebtExpense” on River’s January 2020 Income Statement?