A. Journalize the transactions. The company uses the periodic method. B. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed. (Be sure to record the beginning balance in the Allowance account in the working papers that accompany this text.) c. Prepare a current assets section of the balance sheet. Ending balances needed are as follows: Cash, $12,500; Accounts Receivable, $175,000; Office Supplies $2,150; Merchandise Inventory, $107,000; Prepaid Rent, $1,150. 13A-4. Sherrill Company completed the following transactions: (60 min) 101,2,3 50 022 2015 Jan. Jan. 9 15 Mar. 17 9 Apr. June 15 Sold merchandise on account to Rick's Supply, 51,600. Wrote off the account of Pete Redding as uncollectible because of death, $1,000. Received $550 from Romo Co., whose account had been written off 2014. The account was reinstated and the collection recorded. Received 18% of the $4,400 owed by Lane Davis. The remainder was written off as uncollectible. The account for Mac's Garage was reinstated for $1,100. The account written off 3 years ago and collected in full today. Prepared a compound entry to write the following accounts off as uncollectible: Jim's Diner, $200: Kailey Auto, 5420; Ralph's Hardware, 5700 Sold merchandise on account to J.B. Rug, $1,700. Based on an aging of Accounts Receivable, it was estimated that 7.400 will be uncollectible out of a total of $175.000 in Accounts Receivable. Closed Bad Debts Expense to Income Summary. Oct. 18 (nie GESS.COM Nov. 12 Dec. 31 wolle Dec. 31 From the preceding as well as the following additional data, complete a-- 022 Acct. No. Balance $4,400 114 eck Figure: cal current assets Allowance for Doubtful Accounts Income Summary Bad Debts Expense $290,400 312 612 periodic method. mary, and Bad beginning bal a. Journalize the transactions. The company uses the periodic b. Post to Allowance for Doubtful Accounts, Income Summary, Debts Expense accounts as needed. (Be sure to record the begin ance in the Allowance account in the working papers that a this text.) c. Prepare a current assets section of the balance sheet. Ending needed are as follows: Cash, $12,500; Accounts Receivable, Office Supplies, $2,150; Merchandise Inventory, $107,000; Rent, $1,150. ing papers that accompany sheet. Ending balances eivable, $175,000 %, $107,000; Prepaid