Case #2 : Assessing bad debts and sales returns Westworld Inc. provides credits sales to its customers and reports the following account balances with respect to those sales. During the year, Westworld Inc. made gross credit sales of $473,000. Westworld typically gives cash discounts under terms 2/15,n/40. During the year, Westworld collected cash in the amount of $504,000 ( $453,600 within the discount window provided and $50,400 outside the discount window). Within the discount window cash collections resulted in $9,257 of sales discounts. Westworld wrote-off accounts with a value of $28,000. Westworld also allows sales returns up to 90 days, predicting that 4% of its yearly credit sales end in sales returns. Actual retums for the year amounts to $22,300. During the year, the company reinstated $5,000 of accounts written off in the prior year and collected $4,500 of these reinstated accounts. 1. Provide journal entries for all the above transactions that would have occurred during the period. Provide effects to A/L/NI for each journal entry. 2. Provide bad debt expense for Westworld's accounts under the balance method using the following aging schedule of accounts, 3. Determine the estimate of sales returns at the end of the period and provide a journal entry to record it. Provide the impact to A/L/NI. 4. Provide the ending account balances for Westworld's real accounts. 5. Provide the net realizable value of receivables at 12/31/6. 6. Provide the net credit sales reported by Westworld for the year 206