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.