Matiere Co. uses the percent-of-sales method at interim periods and then at the end of each year it uses the percent-of-accounts-receivable method for financial statement reporting purposes. Matiere Co. completed the following transactions during 2022 and 2023:

Matiere records all amounts to the nearest cent. Present all amounts to two decimal places.

Required

1. Open three-column general ledger accounts for Allowance for Doubtful Accounts and Bad Debt Expense. Keep running balances.

2. Journalize the transactions in the general journal and post to the ledger accounts.

3. The December 31, 2023, balance of Accounts Receivable is $146,000. Show how Accounts Receivable would be reported at that date.

4. Assume that Matiere Co. begins aging accounts receivable on December 31, 2023. The balance in Accounts Receivable is $146,000, the credit balance in Allowance for Doubtful Accounts is $12,000 (use your calculations from Requirement 3), and the company estimates that $19,900 of its accounts receivable will prove uncollectible.

a. Make the adjusting entry for uncollectibles.

b. Show how Accounts Receivable will be reported on the December 31, 2023, balance sheet after this adjusting entry.

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2022 Jun. 30 Dec. 31 31 2023 Mar. 26 Jun. 30 Sep. 15 Nov. 10 Dec. 5 31 31 31 Estimated that bad debt expense for the first half of the year was 1.5 percent of credit sales of $385,000. Estimated that the Allowance for Doubtful Accounts balance at year end should be 6 percent of accounts receivable of $192,500 and recorded the appropriate journal entry. Made the closing entry for the bad debt expense account. Sold inventory to Mabel Sanders, $10,037.50, on credit terms of 2/10, n/30. Ignore cost of goods sold. Estimated that bad debt expense for the first half of the year was 1 percent of credit sales of $300,000. Wrote off Mabel Sanders's account as uncollectible after repeated efforts to collect from her. Received $5,500 from Sanders, along with a letter stating her intention to pay her debt in full within 30 days. Reinstated her account in full. Received the balance due from Sanders. Made a compound entry to write off the following accounts as uncollectible: Curt Major, $2,200; Bernadette Lalonde, $962.50; Ellen Smart, $1,470. Estimated that the Allowance for Doubtful Accounts balance at year end should be 6 percent of accounts receivable of $200,000. Made the closing entry for the bad debt expense account.