On September 30, Rochford Nurseries had a \(\$ 28,000\) debit balance in Accounts Receivable. During October the company had sales of \(\$ 137,000\), which included \(\$ 90,000\) in credit sales. October collections were \(\$ 91,000\), and write-offs of uncollectible receivables totaled \(\$ 1,070\). Other data include:

- September 30 credit balance in Allowance for Uncollectible Accounts, \(\$ 2,100\).

- Uncollectible-account expense, estimated as 2 percent of credit sales.

\section*{Required}

1. Prepare journal entries to record sales, collections, uncollectible-account expense by the allowance method (using the percentage of sales approach) and write-offs of uncollectibles during October.

2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and net accounts receivable at October 31. How much does Rochford expect to collect?

Recording bad debts by the allowance method

(Obj. 1)