1. You are the accountant for L Company. The Company completed the following transactions:

October 1, 2018	Provided services for a customer, John, for $30,000 on account with terms of 1/15,n/30.
November 1, 2018	John has not paid her account. L Company accepted a 3 month, 5% note receivable from John to settle its account receivable.
December 31, 2018	Accrued interest on note from John.
January 31, 2019	L Company received the full amount due from John including interest.

Required:

Prepare journal entries for the above transactions. Round to the nearest dollar.

DATE	ACCOUNTS & DESCRIPTION	DEBIT	CREDIT

2.

H Company uses the allowance method for accounts receivable.

The allowance account has a $10,000 balance prior to adjustment. Credit sales during the year are $4,000,000. Sales returns and allowances on credit sales are $500,000. Management estimates that 0.75% of credit sales are uncollectible. Prepare the journal entry required to update the allowance account.

(Date: December 31, 2018)

DATE	ACCOUNTS & DESCRIPTION	DEBIT	CREDIT

*Please explain in detail.