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ABC Landscaping Company is based in Oshawa, Ontario. The company has a December 31 fiscal yearend and operates with a perpetual inventory system. The following

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ABC Landscaping Company is based in Oshawa, Ontario. The company has a December 31 fiscal yearend and operates with a perpetual inventory system. The following transactions occurred during 2020 and 2021. 2020 Feb. 1 Sold goods to Rita Sanchez (on account) for $10,000. The terms of the sale were 1/20, n/40. The cost of the goods sold was $6,000. Feb. 15 Rita Sanchez returned $2,000 worth of goods (not suitable) from the Feb. 1 sale. The cost of the goods was $1,200 and they were returned to inventory. Feb. 18 Collected the amount due from Rita Sanchez. an 8-month, 10% note in settlement of her account. Oct. 15 A customer, Jack Smith, paid the amount owing on his account of $1,500. His account had previously been written-off in 2019. Nov. 1 Provided landscaping services of \$3,600 to Kim Weber. Kim signed a 6-month, 8\% note for the services provided. Dec. 31 Prepared all necessary adjusting entries at fiscal year-end. 2021 May 1 Kim Weber honoured her note in full. June 1 Julia Liu dishonoured her note. Collection is expected at a later date. Instructions: Prepare all required journal entries for the above transactions. Interest is paid at maturity on all notes. The company uses the allowance method for estimating uncollectible accounts receivable. Estimated uncollectible accounts receivable on December 31,2020 is $25,000 ( based on net credit sales). The Allowance for Doubtful Accounts has a $15,000 debit balance ( before adjustment) on December 31 , 2020. \begin{tabular}{|l|l|l|l|} \hline Date & Accounts & Debit & Credit \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}

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