1. The following series of transactions occurred during 2004 and 2005 when Linwood Co. sold merchandise to John Moore. Linwood's annual accounting period ends on December 31.

10/01/04 Sold $12,000 of merchandise to John Moore, terms 2/10, n/30

11/15/04 Moore reports that he cannot pay the account until early next year. He agrees to exchange the account for 120-day, 12% note receivable.

12/31/04 Prepared the adjusting journal entry to record accrued interest on the note.

03/15/05 Linwood receives a check from Moore for the maturity value (with interest) of the note.

03/22/05 Linwood receives notification that Moore's check is being returned for non-sufficient funds (NSF).

12/31/05 Linwood writes off Moore's account as uncollectible.

Prepare Linwood Co.'s journal entries to record the above transactions assuming they use the allowance method of accounting for uncollectible accounts.

2. A company that uses the allowanc emethod to account for its bad debts had credit sales of $740,000 in 2004, including a $720 sale to Linda Paul. On Dec 31, 2004, the company estimated its bad debts at 1.5% of its credit sales. On June 1, 2005, the company wrote off as uncollectible the $720 account of Linda Paul; and on Dec 21, 2005 Linda Paul unexpectedly paid her acocunt in full. Prepare the necessary journal entries 9a0 on Dec 31, 2004,m reflect the estimate of bad debts expense; (b) on June 1, 2005 to write off the bad debt; and (c) on Dec 21 2005 to record the unexpected collection.