3 P8-37B Accounting for uncollectible accounts using the allowance metho (percent-of-sales) and reporting receivables on the balance sheet Dialex Watches completed the following selected transactions during 2018 and 2019: CR DO 31 2018 Dec. 31 Estimated that bad debts expense for the year was 3% of credit sales of $410,000 and recorded that amount as expense. The company uses the allowance method. Made the closing entry for bad debts expense. 2019 Jan. 17 Sold merchandise inventory to Marty White, $400, on account. Ignore Cost of Goods Sold. Jun. 29 Wrote off Marty White's account as uncollectible after repeated efforts to collect from him. Aug. 6 Received $400 from Marty White, along with a letter apologizing for being so late. Reinstated White's account in full and recorded the cash receipt. Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Barry Krisp, $1,600; Maria Bryant, $1,100; and Richard Renik, $400. 31 Estimated that bad debts expense for the year was 3% on credit sales of $490,000 and recorded the expense. 31 Made the closing entry for bad debts expense. Lab 17 Instructions BANK RECONCILIATION AND JOURNAL ENTRIES - In the Bank Reconciliation Template, prepare a bank reconciliation and complete the adjusting entries required. Then upload the completed template to the Lab 17 Upload Link. Use the following data that were accumulated for use in reconciling the bank account of Star Battles Restaurant for October 2020: 4. The bank service charge is $70. b. The book balance is $6,100 at October 31, 2020. c. Outstanding checks total $1,300. d. An automatic EFT withdrawal was taken from the account to pay utilities in the amount of $2,700 e. A check from LukeCo for $3,500 was returned for nonsufficient funds. f. The bank received an EFT from Leah Corp and deposited $14,300 in the account The EFT was from Leah Corp to pay rent. g. The bank balance at October 31, 2020 was $9,730. h. The bank collected a note in the amount of $1,500 deposited the cash in ler's account at the bank but Vader has not yet entered the amount in the books. The total of $1,500 consists of $1,450 principle and $50 interest. A deposit of $7,200 is in transit. i 3 P8-37B Accounting for uncollectible accounts using the allowance metho (percent-of-sales) and reporting receivables on the balance sheet Dialex Watches completed the following selected transactions during 2018 and 2019: CR DO 31 2018 Dec. 31 Estimated that bad debts expense for the year was 3% of credit sales of $410,000 and recorded that amount as expense. The company uses the allowance method. Made the closing entry for bad debts expense. 2019 Jan. 17 Sold merchandise inventory to Marty White, $400, on account. Ignore Cost of Goods Sold. Jun. 29 Wrote off Marty White's account as uncollectible after repeated efforts to collect from him. Aug. 6 Received $400 from Marty White, along with a letter apologizing for being so late. Reinstated White's account in full and recorded the cash receipt. Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Barry Krisp, $1,600; Maria Bryant, $1,100; and Richard Renik, $400. 31 Estimated that bad debts expense for the year was 3% on credit sales of $490,000 and recorded the expense. 31 Made the closing entry for bad debts expense. Lab 17 Instructions BANK RECONCILIATION AND JOURNAL ENTRIES - In the Bank Reconciliation Template, prepare a bank reconciliation and complete the adjusting entries required. Then upload the completed template to the Lab 17 Upload Link. Use the following data that were accumulated for use in reconciling the bank account of Star Battles Restaurant for October 2020: 4. The bank service charge is $70. b. The book balance is $6,100 at October 31, 2020. c. Outstanding checks total $1,300. d. An automatic EFT withdrawal was taken from the account to pay utilities in the amount of $2,700 e. A check from LukeCo for $3,500 was returned for nonsufficient funds. f. The bank received an EFT from Leah Corp and deposited $14,300 in the account The EFT was from Leah Corp to pay rent. g. The bank balance at October 31, 2020 was $9,730. h. The bank collected a note in the amount of $1,500 deposited the cash in ler's account at the bank but Vader has not yet entered the amount in the books. The total of $1,500 consists of $1,450 principle and $50 interest. A deposit of $7,200 is in transit