135. Chico Company began 2016 with balances in accounts receivable and allowance for doubtful accounts of $44,300 and $1,675, respectively. The company reported credit sales of $490,250 during the...

135. Chico Company began 2016 with balances in accounts receivable and allowance for doubtful accounts of $44,300 and $1,675, respectively. The company reported credit sales of $490,250 during the year, and wrote off $1,400 of uncollectible accounts. Chico Company prepared the following aging schedule on December 31, 2016:

136. Perez Company began 2016 with a balance of $148,000 in accounts receivable and $8,600 in allowance for doubtful accounts. During the year, it provided $656,000 in services to customers on account and collected $580,000 in cash from its accounts receivable. Perez wrote off $6,500 of uncollectible accounts during 2016. At the end of the year, the company prepared an aging schedule and adjusted its accounts based on the estimate that $12,600 of receivables would not be collected.
Required: a) Prepare the journal entries to record all the transactions related to accounts receivable, including the estimate of uncollectible accounts expense.
b) What was the net realizable value of Pence's accounts receivable at the end of 2016?