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In: AccountingPercent of Sales MethodAt the end of the current year, Accounts Receivable has abalance...Percent of Sales MethodAt the end of the current year, Accounts Receivable has abalance of $895,000; Allowance for Doubtful Accounts has a creditbalance of $8,000; and sales for the year total $4,030,000. Baddebt expense is estimated at 1/4 of 1% of sales.1. Determine the amount of the adjusting entry for uncollectibleaccounts. $2. Determine the adjusted balances of Accounts Receivable,Allowance for Doubtful Accounts, and Bad Debt Expense. AccountsReceivable $ Allowance for Doubtful Accounts $ Bad Debt Expense$3. Determine the net realizable value of accounts receivable.$