1. Prepare general journal entries for the following transactions for the current year: April 25 Sold $3,500 of merchandise to Phillip Corporation receiving a 9%,60-day, $3,500 note receivable (the merchandise cost $2,000 ) June 24 The note of Phillip Corporation was dishonored. 2. 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: April 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 $1,300 had been written off in the prior year. December 31 Bad debts expense of $4,500 was estimated and recorded. What amount should appear in the allowance for doubtful accounts in the December 31, balance sheet for the current year? (Hint: use the T account to determine new balance)