1) Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales on July 15, 2016 amounted to $25,000 and were subject to a 3.5% credit card company collection fee.Alpha Company collected payment from Worldwide Express on July 21.What amounts should be recorded for the following accounts for the July 21 collection?

1. Cash
2. Sales
3. Service Charge
4. Accounts Receivable

2) Alpha Company sold goods to customers who used Under-the-Hill bank credit cards. Credit card sales on July 8, 2016 amounted to $12,000 and were subject to a 2.5% bank fee.Use this information to prepare the General Journal entry (without explanation) for July 8, 2016. If no entry is required then write "No Entry Required."

Date Accounts Debit Credit

3) Alpha Company uses the direct write-off method of recording uncollectible accounts. On August 15, 2016, Yankee Zulu filed for bankruptcy and informed Alpha that he would be unable to pay $550 owed to Alpha.Alpha is certain that it will be unable to collect the $550.Use this information to prepare the General Journal entry (without explanation) for August 15. If no entry is required then write "No Entry Required."

Date Accounts Debit Credit

4) Alpha Company uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2016, Accounts Receivable has a balance that consists of:

Dollar Value

Age of Account

Estimated Collectible

$115,000

< 30 days old

98%

65,000

30 to 60 days old

85%

20,000

61 to 120 days old

75%

5,000

> 120 days old

10%

The current unadjusted Allowance for Uncollectable Accounts balance is a credit balance of $2,500 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the:

1. Accounts Receivable

2. Allowance for Doubtful Accounts

3. Bad Debt Expense