4) Owens Company uses the direct write-off method of accounting for uncollectible accounts receivable. On December 6, Year 1, Owens sold $6,300 of merchandise to the Valley Company. On August 8, Year 2. after numerous attempts to collect the account, Owens determined that the account of the Valley Company was uncollectible. a. Prepare the journal entry required to record the transactions on August 8. b. Assuming that the $6,300 is material, explain how the direct write-off method violates the expense recognition (matching) principle in this case. 5) Bonita Company estimates uncollectible accounts using the allowance method at December 31. 1[prepared the following aging of receivables analysis. Days Due Current 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable ST 10.000 68.000 |17.000 10,000 8.000 7.000 Percent uncollectible 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 $550 credit c. Prepare the adjusting entry to record Bud Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $300 dcbit