problems 1 and 2

Problem 1 During its first year of operations, Ness Company had the following transactions. The company uses the percent-of-sales method to estimate uncollectible accounts. l doa $1,000,000 $2,000,000 $500,000 $75,000 2.5% Cash Sales Credit Sales Collections on Account Write-offs of uncollectible accounts Uncollectible-Account Expense ldo Required: Prepare all journal entries for these transactions. Explanations are not required. Ignore Cost of Goods Sold. edne Problem 2 At December 31 of the current year, Accounts Receivable has a balance of $900,000, the Allowance for Uncollectible Accounts has a debit balance of $1,000 and net credit sales for the year are $3,000,000. Using the aging-of-receivables method, the balance of Allowance for Uncollectible Accounts is estimated at $30,000 Required: 1. Journalize the adjusting entry. Omit the explanation. 2. Determine the net realizable value of accounts receivable at the end of the year