1. Open Kellogg's Annual Reports See Supplemental Financial Data and find the balance in Allowance for Doubtful Accounts for the most recent year.

2. Sigmund Company completed the following transactions in 2012:

• Jan. 9 Sold merchandise on account to Rogers Supply, $1,200.
• Jan. 15 Wrote off the account of Pete Ramirez as uncollectible because of his death, $500.
• Mar. 17 Received $450 from Roland Co., whose account had been written off in 2011. The account was reinstated and the collection recorded.
• Apr. 9 Received 18% of the $4,100 owed by Lane Danks. The remainder was written off as uncollectible.
• June 15 The account for Maes Garage was reinstated for $1,500. The account was written off three years ago and collected in full today.
• Oct. 18 Prepared a compound entry to write the following accounts off as uncollectible: Jims Diner, $220; Kross Auto, $460; Reeces Hardware, $800.
• Nov. 12 Sold merchandise on account to J.B. Rug, $2,200.
• Dec. 31 Based on an aging of Accounts Receivable, it was estimated that $7,000 will be uncollectible out of a total of $165,000 in Accounts Receivable.
• Dec. 31 Closed Bad Debts Expense to Income Summary.

From these transactions as well as the following additional data, complete ac:

	Acct. No.	Balance
Allowance for Doubtful Accounts	114	$4,200
Income Summary	312
Bad Debt Expense	612

Figure 2

a. Journalize the transactions.

b. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed.

c. Prepare a current assets section of the balance sheet. Ending balances needed are as follows: Cash, $13,500; Accounts Receivable, $165,000; Office Supplies, $2,100; Merchandise Inventory, $105,000; Prepaid Rent, $1,350