6 8 10 Presented below are selected transactions for ABC Company during May May 2 Purchased merchandise on account from X Corporation for 59,500 2/10, 1/30). 3 Sold merchandise to Brown and Company for $1,800 (2/10, 1/30). The merchandise sold cost so% of the sale price Purchased merchandise on account from y Company Ltd. for $3,500 2/10, 1/301 Paid freight charges of $50 on items purchased on May 4. Received payment from Brown. for purchase of May 3 Paid X Corporation for May 2 purchase, Paid Y Company for May 6 purchase. 15 15 Record the above transactions for ABC Company, assuming a periodic inventory system is used an CanAm Limited is looking at their Accounts Receivable at Year End. They determine that they must write off two accounts. The first account is for Smith for $900 and one for Jones for 1,100. The balance before the write-offs in the Allowance for Dod Accounts is $600 credit. After they do the write-offs, the following are the aged balances and collection percentages for Cansen Limited on December 31, 2018 before the current year's provision for uncollectible accounts. Estimated Percentage Uncollectable Current Accounts $250,000 1.5% 1-30 days past due. 75,000 31-60 days past due. 8,000 1596 61-90 days past due.. 2,000 25% Over 90 days past due 5.000 5096 Total Accounts Receivable. $340,000 In January 2019 Smith comes in and pays his account in full. Instructions (a) Prepare the journal entries to write off the accounts (b) Calculate the balance in the Allowance for Doubtful Accounts account after the write-offs and prepare the adjusting entry at December 31, 2018, to recognize bad debts expense from the aging data. (show calculations) Prepare the journal entries to accept payment for the Smith account