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The controller of Yamato Inc. is in the process of computing the bad debt expense for 2022. Unfortunately, a computer virus attacked Yamato's accounting system one night and destroyed the information regarding the approach that Yamato has consistently used for computing the uncollectible accounts expenses for the past 3 years. However the following information is provided by the credit manager. 2020 2021 2022 Accounts receivable, December 31 $148,600 $152,500 $150,500 Allowance for doubtful accounts (credit balance). Dec. 31 40,500 42,500 44,500 Accounts receivable written off during the year 21,500 27.000 23.000 Sales" Cash 325,000 305,000 350,000 Credit 521,000 580,000 500,000 Yamato uses the perpetual inventory system and its cost of goods sold is 45% of the sales The credit manager explains that the large write off in 2021 was due to an unexpected bankruptcy of a major customer even though the age distribution of accounts receivable has been very consistent over the past three years Required: 1. Calculate the following items: (a) the bad debt expense amount for 2021. (b) the bad debt expense amount for 2022 (c) cash collection from credit sales for 2021. (d) cash collection from credit sales for 2022 A Amount 1 2 3 (a) (b) (c) (d) gelos Bad Debt Expense for 2021 Bad Debt Expense for 2022 Cash Collection from Credit Sales for 2021 Cash Collection from Credit Sales for 2022 4 una 2. Prepare journal entries to record all the transactions for Yamato Inc. in 2022 View transaction list Journal entry worksheet 2 3 5 Record the cash and credit sales in one transaction. Note: Enter debits before credits. General Journal Debit Credit Entry 1 Record entry Clear entry View general Journal 3. During 2023,8% of the accounts receivable previously written off in 2022 is collected in full. Provide the required Journal entries. View transaction list Journal entry worksheet 1 Record the entry to reinstate the accounts receivable. Note: Enter debits before credits General Journal Debit Credit Entry 1 Record entry Clear entry View general Journal 4. What are the impact on Assets, Liabilities. Shareholders' Equity, and Net Earnings, when the uncollectible accounts receivable is written oft? Please identify as (tIncrease (2) Decrease, or (3) No Effect A Assets B Liabilities D Net Earnings 1 2 Shareholders' Equity

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