Becca’s Finance and Collection Company has had a lot of trouble collecting its receivables recently.Discuss how each of the following circumstances might be reflected in the Allowance for Uncollectible Accounts: 1. Dagwood Bumpstead has an “open”account that is always overdue.Dagwood makes regular payments of $500 each month, but the balance in his account is always about $4,000. 2. Blondie purchased a car using $4,000 borrowed from Becca’s. Blondie has not made any payments for six months, and her overdue balance exceeds

$1,200. 3. Sad Sack has just borrowed $4,000 from Becca’s, has excellent credit references, and after borrowing the money has sent Becca’s a change-of-address notification showing a new address in Brazil. 4. Blondie paid her overdue balance. 5. Dagwood’s son purchased a car using $4,000 borrowed from Becca’s.He has no credit references, other than the family connections and circumstances discussed earlier. Becca’s is unable to get Dagwood to cosign the note! 6. Blondie’s daughter purchased a new sound system for her house and car, using $4,000 borrowed from Becca’s.She has an excellent credit history,but after purchasing the sound system,it failed;she informed Becca’s that because the seller provided no warranty,she was not going to make any payments on the defective sound system.