3. ! 1 4 5 2. On May 15, a business that uses the direct write-off method recovers a $500 receivable that was previously written off. Prepare any necessary journal entries on May 15. 3. A business has the following financial data at the end of December: Accounts receivable Allowance for doubtful accounts 100,000 1,000 (credit balance) Sales revenue-cash Sales revenue-credit 25,000 125,000 A. Assume the business uses the income statement method (percent of sales method) and a 0.7000% estimation rate. Prepare any necessary journal entries on December 31. B Assume the business uses the balance sheet method (percent of accounts receivable method) and a 0.7000% estimation rate. Prepare any necessary journal entries on December 31. 4. On June 15, a business that uses the allowance method determines that it will not be able to collect a $2,000 receivable from a specific customer. Prepare any necessary journal entries on June 15