Dialex Watches completed the following transactions during 2007 and 2008:

Requirements 

1. Open general ledger accounts for Allowance for Uncollectible Accounts and Uncollectible-Account Expense. Keep running balances. All accounts begin with a zero balance.

2. Record the transactions in the general journal, and post to the two ledger accounts.

3. The December 31, 2008, balance of Accounts Receivable is \(\$ 139,000\). Show how Accounts Receivable would be reported on the balance sheet at that date. Use the first reporting format at the top.

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2007 Dec. 31 2008 Estimated that uncollectible-account expense for the year was 1% on credit sales of $400,000, and recorded that amount as expense. Use the allowance method. 31 Made the closing entry for uncollectible-account expense. Jan. 17 Sold inventory to Mitch Vanez, $600, on account. Ignore cost of goods sold. June 29 Wrote off the Mitch Vanez account as uncollectible after repeated efforts to collect from him. Aug. 6 Received $600 from Mitch Vanez, along with a letter stating his apology for paying late. Reinstated Vanez's account in full and recorded the cash collection. Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $1,700; Marie Monet, $1,300. 2008 Dec. 31 Estimated that uncollectible-account expense for the year was 1% on credit sales of $480,000, and recorded that amount as expense. 31 Made the closing entry for uncollectible-account expense.