ABC, Co. uses the allowance method of accounting for uncollectible accounts receivables. Selected transactions completed by XYZ are as follows: Feb 1 Sold merchandise on account to XYZ Co., $20,000. The cost of the merchandise sold was $11,000. Mar 24 Received 60% of the $22,000 balance owed by OP Co., a bankrupt business, and wrote off the remainder as uncollectible. May 14 Accepted a 60-day, 12% note for $20,000 from XYZ Co. on account. Jun 3 Reinstated the account of Bibi, which had been written of in the preceding year as uncollectible. Journalized the receipt of $12,000 cash in full payment of Bibi's account. Aug 12 Received from XYZ Co. the amount due on its note of May 14. Dec 31 Wrote off the following accounts as uncollectible (compound entry): Stan Co., $2,000; Jenny Co., $1,400; Bailey Co., $3,000; Fluke Co., $2,500. Based on analysis of the $350,500 of account receivable, it was estimated that 8,500 will be uncollectible. Journalized the adjusting entry, provided that January 1 credit balance of T account for Allowance for Doubtful Accounts was $10,000 Instructions: a. Journalize the transactions. b. Post each entry that effects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts, Bad Debt Expense