14 Accounting II CH9: Receivables-Accounting for Bad Debts-Allowance Method 1. BJ's Inc. uses the Allowance method, Balance Sheet approach for computing its Bad Debts, on December 31, 2021; the management estimates as uncollectible the following percents for receivables: < 0-30 days $10,000,000, uncollectible=3% 31-60 days = $8,000,000. Uncollectible= 5% 61-90 days $3,000,000. Uncollectible=8% = More than 91 days = $1,000,000. Uncollectible= 90% < 2. On 1/25/22 the customer Michael Jones moved to another state, write off his receivable of $ 4,000. < 3. On 2/25/22 the customer Mary Garcia had a car accident and has been declared disable and called to let us know the she is filing for bankruptcy. Write of her $ 5,000 receivable < < 4. On 4/29/22 Paul Martinez has changed his address and we could not find him since January 8, 2022, write off his receivable of 7,000. < 5. On 4/29/22, the customer Mary Garcia came back to pay her receivable + 11% interest. The sale date was on January 5, 2022 with terms n/30. < Required: Record the transactions for BJ's. Accounting II CH9: Receivables-Accounting for Bad Debts-Allowance Method Problem 1+ 1. Best Buy uses the income statement approach and its credit sales in 2021 were $ 30,000,000 and the estimated uncollectible rate was 2.5%. 2. On January 23, 2022 the customer Richard Morris filed for bankruptcy and will not pay his bill of $4,000, write it off. < 3. On April 29, 2022, the customer Richard Morris came to the office to pay his whole bill plus interest of 6%. The sale date was January 2 with terms: n/30. < Required: A. Journal entries for Best Buy