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At January 120X5, Function Inc. reported an accounts receivable balance of $812,580 and an allowance for doubtful accounts balance of $153,400. Function Inc. only sells on account (no cash sales). During 20X5, Function had the following summary transactions for receivables. - Sales were $21,895,000. Cost of goods sold was $16,700,000 - Sales returns and allowances were $800,000. Cost of goods returned to inventory was $600,000 - Collections of accounts receivable were $19,530,000 - Interest added to overdue accounts was $10,200. Of this amount $6,000 was collected. - Write-offs of accounts receivable deemed uncollectible of $220,000 - Collection of accounts previously written off as uncollectible $21,000 - Allowance for doubtful accounts is estimated at $154,000 at December 31. Required: 1. Prepare journal entries to record each of the above summary transactions 2. Determine the balances at December 31,205 for the following accounts: - accounts receivable (gross) - sales - sales returns and allowances - cost of goods sold - bad debt expense 3. Show the statement of financial position presentation of receivables as at December 31, 205. 4. Prepare a statement of earnings (in good form) through gross profit

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