Allowance Method for Accounting for Bad Debts At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $128,000, and the balance in Allowance for Doubtful Accounts was $2,200, EZ Tech's sales in 2017 were $960,000,90% of which were on credit. Collections on account during the year were $610,000. The company wrote off $4,000 of uncollectible accounts during the year Required: 1. Identify and analyze the sales during 2017. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry' and leave the amount box blank. If the effect on a financial statement item is negative, L.e, a decrease, be sure to enter the answer with a minus sign. Identify and analyze the transactions related to the collections of cash during 2017. How does this entry affect the accounting equation? If a financial statement item is not alfected, select "No Entry" and leave the amount box blank. if the effect on a financial statement item is negative, lie, a decrease, be sure to enter the answer with a minus sign. Identify and analyze the transactions related to the write-offs of accounts recelvable during 2017. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, l.e, a decrease, be sure to enter the answer with a minus sign, Remember; if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra accou t is decreased, it will have the effect of increasing the corresponding financial statement item. 2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 4% of credit sales and (b) amounts expected to be uncollectible are 7% of the year-end accounts recelvable. a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 4% of credit sales. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, lie, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it wil have the effect of decreasing the corresponding financial statement item. If a contra account is decressed, it will have the effect of increasing the corresponding financial statement item. b. Identify and apalyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 7 \% of the year-end accounts receivable. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, lie, a decrease, be sure to enter the answer with a minus sign. Remember; if a contra account is increased, it will have the effect of decreasing the corresponding financlal statement item. If a contra account is decreased. it will have the effect of incroasina the correspondina financlal statement item. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank, If the effect on a financial statement item is negative, i.e, a decrease, sure to enter the answer with a minus sign. Remember: if a contra account is incressed, it will have the effect of decreasing the corresponding finencial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. 3. What is the net realizable value of accounts receivable on December 31,2017 , under each assumption in part (2)? Usina the percentage of sales approach, the net realizable value of the recelvables is? Using the percentage of year-end recelvables approach, the net realizable value of the recelvables is? 4. The recognition of bad debts expense the net realizable value by the amount recorded in bad sebts expense and the The write off of accounts the net realizable value