1) (20 points) The Links Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred: Sept 7 Links Company determined that the $8,000 account receivable of the Rainier Company was uncollectible, and wrote it off. Oct 15 Links Company determined that the $3,500 account receivable of the Olympic Company was uncollectible and wrote it off. Nov 9 Rainier Company paid $6,000 of the amount owed to the Links Company. Links Company does not expect further collections from the Rainier Company. Dec 31 Links Company estimates that 1% of its $1,900,000 of credit sales would be uncollectible. a. Prepare the general journal entries to record these transactions. b. If the balance of the allowance for uncollectible accounts was a $4,000 credit on January 1 of the current year, determine the balance of the allowance for uncollectible accounts at December 31 of the current year. Assume that the transactions above are the only transactions affecting the allowance for uncollectible accounts during the year. DATE GENERAL JOURNAL. DERIT CREDIT b. 2) (20 points) Thatcher Company had a January 1, credit balance in its Allowance for Doubtful Accounts of $4,000 for the current year. The following transactions and events affected the Allowance for Doubtful Accounts during the current year: Apr 15 Bean's account receivable of $2,700 was deemed uncollectible July 1 Cho paid the full amount of a previously written-off account receivable. This receivable of S1,300 had been written off in the prior year Dec 31 Bad debts expense of $4,500 was recorded. a. Prepare the general journal entries to record these transactions. DATE GENERAL XURNAL DEBIT CREDIT b. What amount should appear in the allowance for doubtful accounts in the December 31, balance sheet for the current year? 3) (15 points) At December 31 of the current year, a company reported the following: Total sales for the current year: $980,000 includes $160,000 in cash sales. Accounts receivable balance at Dec. 31, end of current year: $160,000. Allowance for Doubtful Accounts balance at January 1, beginning of current year: 57,300 credit balance. Bad debts written off during the current year: 55,800. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal 1.5% of credit sales: DATE GENERAL JOURNAL DEBIT CREDIT What is the balance in the Allowance for Doubtful Accounts after all adjustments are made? 4. (20 points) Prepare journal entries for the following transactions of Feathers Company a, 5/1/21 Accepted a $9500, 45-day, 8% note receivable in granting Smith Company a time extension on their past-due note receivable. b. Smith Company honored the note at its maturity date, and paid the note in full . DATE GENERAL JOURNAL DEBIT CREDIT 5. (25 points) Prepare journal entries to record the following transactions for the Feathers Company. 11/1/20 Accepted a $6,000, 180-day, 8% from Fred Brown in granting a time extension on his past-due account receivable. 12/31/20 Adjusted the year-end accounts for the accrued interest earned on the Brown note. 4/30/21 Brown honored his note when presented for payment. DATE GENERAL JOURNAL DEBIT CREDIT