1) Bad Debts Expense [14] Mildred owns Mildred's Motorcycle Repair in Etobicoke. Sadly, Mildred does not always receive paymer on her accounts and must sooner or later write them off. Record the transactions outlined below within the journal provided on the next page. April 30: Mildred uses the allowance method to account for her Bad Debts Expense. In particular, she uses the percent of sales (Income Statement focus) approach. The total sales for the month of April are $12,000.00 Mildred estimates her Bad Debts expense to be 5% of her total sales. Make the necessary adjusting entry to record the allowance for this bad debts expense. May 3: Mildred provides C. Varone $200.00 of repairs on credit May 8: Mildred provides K. Smith $300.00 of repairs on credit May 18. Mildred tries to phone C. Varone to see about his late payment, but the phone number is disconnected. Mildred writes off the entire account, totaling $200.00. May 23: Mildred tries to phone K. Smith to see about her late payment, but she learns that Ms. Smith ha declared bankruptcy. Mildred writes off the entire account, totaling $300.00 May 29: Much to her surprise, Mildred receives a $200.00 payment on the C. Varone account! It turns out that Mr. Varone had simply moved and needed some time to catch up on his finances. May 31: The total sales for the month of May are $8,000.00. Remember, Mildred estimates her Bad Debts at 5% of her total sales. Make the necessary adjusting entry to record the prediction of this bad debts expense. Journal for Question 2: Date Details P.R. Debit Credit