4. 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. Record the journal entry to adjust for the estimated bad debts on December 31, 2015 assuming Decorators uses the income statement method. b. 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. c. 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 Total 0-30 31-60 61-90 90-120 >120 Accounts Receivable 20,000 5,000 6,000 2,500 6,000 39,500 Estimated % Uncollectible 2% 6% 12% 25% Estimated Bad Debts Calculate the total estimated bad debts. b. 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. 3% a. Question 4. (b) Question 5 (a) chart and found on Sheet2 Question 5 (b). B E . Question 5. (a) Total Ageing of Accounts Receivable Number of Days Outstanding 0-30 31-60 61-90 90-120 Over 120 20,000 5.000 6,000 2,500 6,000 2% 3% 6% 12% 25% Accounts Receivable Estimated % Uncollectable Estimated Bad Debts