1. Lynbrook, Inc. estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. a) Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. b) Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,700 credit. c) Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $900 debit. 2. Scanhouse, Inc. began operations on January 1, 2023. During its first year, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows: 2023 a) Sold $1,250,000 of merchandise (that had cost $920,000) all on credit, terms n/30. b) Wrote off $15,800 of uncollectible accounts receivable. c) Received $945,000 cash in payment of accounts receivable. d) In adjusting the accounts on December 31, the company estimated that 2.25% of accounts receivable will be uncollectible. Required Prepare journal entries to record Scanhouse's 2023 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable. Round amounts to the nearest dollar.)

1. Lynbrook, Inc. estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. a) Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. b) Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,700 credit. c) Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $900 debit. 2. Scanhouse, Inc. began operations on January 1, 2023. During its first year, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows: 2023 a) Sold $1,250,000 of merchandise (that had cost $920,000 ) all on credit, terms n/30. b) Wrote off $15,800 of uncollectible accounts receivable. c) Received $945,000 cash in payment of accounts receivable. d) In adjusting the accounts on December 31, the company estimated that 2.25% of accounts receivable will be uncollectible. Required Prepare journal entries to record Scanhouse's 2023 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable. Round amounts to the nearest dollar.)