QUESTION 2 Account Receivable Problems Section 1 On December 31,2020, Company Dragon Fly has the following information as presented below Account A/C Receivable at the beginning of the year ADA [debit balance in the beginning) Sales Sales Return Sales Discount 15% of the sales are cash $ 8,720 175 25,460 1600 5% of sales The company has decided to estimate bad debt for the year based on 5% sales . The writing off of the debt occurs before the estimation of Allowance for Doubtful debt [ADA] Required Part 1 ( sales Approach] A. Calculate bad debt B. Journalize the bad debt and the Allowance for doubtful debt C. Post them on T-account D. Show the balance extract for the account receivable Part 2 [ Account Receivable method ] If the company decides to use the account receivable method (Use 9% A/C receivable ] A. Calculate the desired balance of ADA B. Calculate the bad debt and show them on T - Account C. Journalize bad debt and the ADA D. Show the balance sheet extract for the Net Realizable Value