$1.$ Prepare the journal entries to record the transactions and events of AC$/$DC on the "transactions" tab. Use the $"$JE tab" to journalize the transactions.

$2.$ Prepare a year$-$end adjusting journal entry as of December $31,2018$ for each separate situation $($use the "AJE tab" to journalize the adjustment$)$:

$($a$)$ Bad debts are estimated to be $$16,800$ by an analysis of the A$/$R aging. The unadjusted balance in the allowance for doubtful accounts is a debit of $$1,000.$

$($b$)$ Bad debts are estimated to be $1\%$ of its credit sales of $$1,500,000.$ The unadjusted balance in the allowance for doubtful accounts is a credit of $$1,000.$

$2017$

Nov

$1$

Accepted a $$9,600,90$ day, $8\%$ note in granting Sam Darnold a time extension on his past due account receivable.

Dec

$31$

Made an adjusting entry to record the accrued interest on the Darnold note.

$2018$

Jan

$30$

Received Darnold's payment for principle and interest on the note dated Nov $1.$

Feb

$28$

Received $$5,000$ cash and accepted a $$6,000,60$ day, $10\%$ note from Leveon Bell in exchange for merchandise that sells for $$11,000($the cost of sale was $$6,000).$

Mar

$1$

Accepted an $$8,000,60$ day, $15\%$ note from Adam Gase in exchange for merchandise that sells for $$8,000($the cost of sale was $$5,000).$

Mar

$5$

Completed a $$6,000$ credit card sale with a $1\%$ fee $($the cost of sales was $$3,200).$ The cash is transferred immediately from the credit card company$)$

Mar

$30$

Leveon Bell dishonored the $$6,000$ note.

Apr

$30$

Received Gase's payment for principle and interest on the note dated Mar $1.$

May

$1$

Wrote$-$off a $$2,500$ account receivable arising from a sale to Woody Johnson that dates $10-$months ago. AC$/$DC uses the allowance method.

May

$31$

Receives the full amount of $$2,500$ from Woody Johnson that was previously written off on May $1.$ Record the bad debts recovery.

Jun

$21$

Received a $$15,000,90$ day, $10\%$ note from Robbie Anderson in exchange for merchandise that sells for $$15,000($the cost of sale was $$7,500).$

Sep

$19$

Received Anderson's payment for principle and interest on the note dated June $21.$

Oct

$30$

Completed a $$4,000$ credit card sale with a $2\%$ fee $($the cost of sales was $$2,000).$ The cash is transferred immediately from the credit card company$)$

Nov

$30$

Wrote$-$off Bell's account against the allowance for doubtful accounts.