Problem 4: 6 marks (15 minutes)
Excel Inc. has provided the following information relating to its sales for the past year, which ended December 31, 20x1.
Estimated % of accounts receivable that will be uncollectable	4%
Opening Balances:
Jan. 1, 20x1 balance in the allowance for doubtful account	$2,000 cr
(this is before any adjusting entries)
Jan. 1, 20x1 balance in the accounts receivable account	$37,000 dr
During 20x1:
Credit sales (20x1)	$450,000
Write offs of uncollectible accounts receivable (20x1)	$6,200
Collections of previously written off amounts (20x1)	$900
Cash received in payment of accounts receivable (20x1)	$426,000
Required
1) Calculate the balance in the Accounts Receivable account at December 31, 20x1. (1 mark)
2) Calculate the balance in the Allowance for Doubtful Accounts at December 31, 20x1. (2 marks)
3) Prepare any journal entries required at December 31, 20x1 to record bad debt expense for the year. (3 marks)