The balance sheet of Falcon Company at December 31, 2019

The balance sheet of Falcon Company at December 31, 2019. includes the following. Accounts receivable $214,500 Allowance for doubtful accounts (credit balance) 10.725 Transactions and events during 2020 include the following: 1. Sales on account during the year were $1,212,500. 2. Total Accounts receivable of $1,100,000 were collected including accounts of $63,000 on which 2% sales discounts were allowed. 3. $9.500 was received in payment of an account which was written off the books as worthless in 2019. 4. Customer accounts of $21,000 were written off during the year. 5. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $23,000. This estimate is based on an analysis of aged accounts receivable. Requirements: 1. Prepare journal entries for each transaction or event that occurred during the year. Use the insert table tool to create a journal for this requirement if you can, dates are not necessary. Round all amounts to the nearest whole dollar 2. Determine the Net Realizable Value of Accounts Receivable as of 12/31/2020. 3. Explain briefly why GAAP requires use of the allowance method of accounting for bad debts for companies that have a material amount of receivables. Include in your explain information about how the allowance method produces an accurate net realizable value for receivables and also satisfies the matching principle.