(a) On July 1, Handley Corp. sold merchandise on account to Cambridge Inc. for $68,000, terms n/30. The cost of the merchandise sold was $36,400. Handley expected a return rate of 5%. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter O for the amounts.) Debit Credit Date Account Titles and Explanation July 1 1 (To record credit sale) July 1 (To record cost of merchandise sold) On January 2, Accustart Ltd. sold merchandise on account to R. Kevin for $49.000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $30,300. On February 1, R. Kevin gave Accustart a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, Accustart's year end, annual adjusting entries were made on July 1, R. Kevin paid the note and any remaining interest. Prepare the journal entries for Accustart to record the transactions only on the dates listed above. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Debit Account Titles and Explanation Accounts Receivable Credit 49000 Sales 49000 (To record sales) Cost of Goods Sold 30300 30300 Inventory To record cost of merchandise sold) Notes Receivable 49000 Accounts Receivable 49000 Cash 1225 Interest Income 30 Interest Receivable Interest Income 1225 Cash Notes Receivable 49000 Interest Income 490 (al Your answer is correct Complete the aring schedule Number of Days Outstanding 0-45 days Accounts Receivable Estimated Uncollectible Total Estimated Uncollected Accounts 14.500 $734,000 2% $ 46-90 days 265.000 5% 13250 Over 90 days 106,000 15900 15% Total $ 43830 $1,105.000 Textbook and Media List of Accounts Attempts unlimited (b) Your awer is partially correct Prepare the adjusting talentry to record bad debts expense at June 3D assuming that Bellevue's allowance for doubtful accounts had a credit balance of 512.120 before adjustment. (Listall debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent monully. If no entry is required, select "No Entry for the account titles and enter for the amounts Debit Credit Date Account Titles and Explanation June 30 Bad Debts Allowance for Do Account