4. On November 30, Kissy Co. has $1,080,500 of accounts receivable. Kissy uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of S27,500. A. Prepare journal entries to record the following selected December transactions. The company uses the perpetual inventory system. I. Sold $610.000 of merchandise (that cost $357,000) to customers on credit. II. Received $790,200 cash in payment of accounts receivable. III. Wrote off $31,400 of uncollectible accounts receivable. IV. $11,400 of the uncollectible account receivable written off were recovered. V. In adjusting the accounts on December 31, its fiscal year-end, the company estimated that 4.0% of accounts receivable will be uncollectible. 5. Mansaray Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total Current 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $440,000 276,000 64,000 40.000 32,000 28,000 Percent uncollectible 20 4% 10% 16% 26% A. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. B. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,200 credit. C. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2.400 debit