2. Rodriguez Carpentry accepts a six month, 8% promissory note from James Matheson on June 1 to settle a $14,000 outstanding account receivable. Record the following transactions in the general journal: a) The issuing of the note on June 1. b) Full payment of the note on December 1. c) Assume the note is dishonoured on December 1. 3. a. 4. On February 1, 2015, Samson Design writes off $2,500 of its accounts receivable as bad debts. Using the direct write-off method, record this transaction. b. Which GAAP is (are) violated when the direct write-off method is used? Explain your answer. In 2015, Decorators Unlimited had net credit sales totaling $1,200,000. Based on past years, 2.5% of credit sales are estimated to be uncollectible. The balance in the Allowance for Doubtful Accounts account is $12,000. a. b. C. Record the journal entry to adjust for the estimated bad debts on December 31, 2015 assuming Decorators uses the income statement method. On February 1, 2016, the account receivable for B. Stinson of $3,000 is deemed uncollectible. Record the journal entry to write off this account. On July 15, 2016, Decorators Unlimited receives a cheque for $3,000 in full payment from B. Stinson for the account previously written off on Feb 1. Record both the recovery and the payment. 5. The Chowdhury Landscaping Company uses the balance sheet method to determine bad debts. The ageing schedule at December 31, 2015 is: Number of Days Outstanding a. b. Total 0-30 Accounts Receivable 20,000 31-60 5,000 61-90 90-120 6,000 2,500 > 120 6,000 39,500 Estimated % Uncollectible 2% 3% 6% 12% 25% Estimated Bad Debts Calculate the total estimated bad debts. If the balance in the Allowance for Doubtful Accounts account is $2,000, record the journal entry to adjust for the bad debts at December 31, 2015.