6. Accounting for Receivables (28 points - 25 minutes) Ibrahimbeyov Inc., a wholesale company located in Bielefeld, specializes in the trade of used soccer equipment and other sports equipment. Their ledger at the end of July 31, 2010 shows Accounts Receivable of 50,000. Allowance for doubtful accounts has a credit balance of 10,000 in the July 31, 2010 financial statements. They prepare monthly financial statements. Ibrahimbeyov assumes that bad debts are expected to be 20% of accounts receivable. Assume a world without VAT. Instructions Journalize the transactions, including adjusting journal entries if necessary, for the month of August 2010 Cash is received from prior months' invoices totaling 10,000 a. Revenues for the month of August total 60,000, all of which are on account. On August 5, 2010 Ibrahimbyov learns that the human ressource manager of Berthold Enterprises headquartered in Greifswald, who owed Ibrahimbyov 8,000 from a March 16, 2009 sale (which had been properly recorded), has disappeared. The manager took all the liquid assets of the company with her. No further collection from this account appears possible. A write-off of the account is authorized by Ibrahimbeyov's management