Question: 1 . 1 . On December 3 1 , 2 0 X 1 , the company reported a debit balance of $ 3 0 0

 1.1. On December 31,20X1, the company reported a debit balance of $300,000 in accounts receivable and a credit balance of $7,000 in the allowance for expected credit losses. December 31 is the companys reporting date. During 20X2, the company had the following transactions:
a. The company made a credit sale of $500,000.
b. The company collected accounts receivable for 650,000.
c. The company wrote off the uncollectible accounts for $20,000.
d. The company collected the receivable of $3,000 that had been written off previously and was not included in the amount of cash collected for Transaction b.

Required (12 marks):
(1) Prepare journal entries to record the above four transactions.
(2) Assume that 3% of the companys accounts receivable cannot be collected, prepare the adjusting journal entry at the end of 20X2.

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