Problem 7-1 Allowance Method for Accounting for Bad Debts LO1 EZ. Tech Company's Accounts Receivable balance was $140,000, and the balance in Allowance for Doubtul Accounts was $2,350. EZ Tech's sales in 2017 were $1,050,000, 80% of which were on credit. Collections on account during the year were S670,000. The company wrote oft $4,000 of uncollectible accounts during the year Required Identify and analyze the transactions related to the sale, collections, and write-offs of accounts receivable during 2017 2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense 3. What is the net realizable value of accounts receivable on December 31, 2017, under each 4. What effect does the recognition of bad debts expense have on the net realizable value? What is 3% ofcredit sales and (b) amounts expected to be uncollectible are 6% of the year-end accounts receivable. assumption in part (2)? effect does the write-off of accounts have on the net realizable value