As of December 31, 1998, Fargo Company's accounts prior to adjustment show:

Fargo Company estimates uncollectible accounts at \(1 \%\) of sales.
On February 23, 1999, the account of Dan Hall in the amount of \(\$ 300\) was considered uncollectible and written off. On August 12, 1999, Hall remitted \(\$ 200\) and indicated that he intends to pay the balance due as soon as possible. By December 31, 1999, no further remittance had been received from Hall and no further remittance was expected.

a. Prepare journal entries to record all of these transactions and adjusting entries.

b. Give the entry necessary as of December 31, 1998, if Fargo Company estimated its uncollectible accounts at \(8 \%\) of outstanding receivables rather than at \(1 \%\) of sales.

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Accounts receivable Allowance for uncollectible accounts (credit balance) Sales $ 40,000 750 250,000