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Swiss Supplies showed the following selected adjusted balances at its December $31,2022,$ year$-$end:

Accounts Receivable

Dec. $31/22$ Balance $490,000$

Allowance for Doubtful Accounts

$16,400$ Dec. $31/22$ Balance

During $2023,$ the following selected transactions occurred:

Sales totalled $$2,800,000,$ of which $25\%$ were cash sales $($cost of sales $$1,804,000).$

Sales returns were $$108,000,$ half regarding credit sales. The returned merchandise was scrapped.

An account for $$24,000$ was recovered.

Several accounts were written off: $$26,000.$

Collections from credit customers totalled $$1,790,000($excluding the recovery in $($c$)$ above$).$

Part A

Required:

$1.$ Journalize transactions $($a$)$ through $($e$).$ You may find it useful to post your entries to T$-$accounts for Accounts Receivable and Allowance for Doubtful Accounts.

Part B

Required:

$2.$ Prepare the December $31,2023,$ adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be $1\%$ of net credit sales.

$3.$ Show how accounts receivable will appear on the December $31,2023,$ balance sheet.

$4.$ What will bad debt expense be on the income statement for the year ended December $31,2023?$

Part C $($independent of Part B$)$

Required:

$5.$ Prepare the December $31,2023,$ adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be $3\%$ of outstanding receivables.

$6.$ Show how accounts receivable will appear on the December $31,2023,$ balance sheet.

$7.$ What will bad debt expense be on the income statement for the year ended December $31,2023?$

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