Accounts Receivable & Notes Receivable Prepare adjusting journal entries for the Smith Company for the following events: 1. June 30-The Company has $16,000,000 of Accounts Receivable. The Accounts Receivable Manager estimates that 9% of this amount will be uncollectible. 2. July 6-Smith Company determines that the Bad Company will not pay its $315,000 account balance. 3. July 7-Horrible Company is in financial difficulty and owes Smith $440,000. In an agreement between the two companies Red Company pays half its bill and Smith writes off the rest. July 7-Horrible Company is in financial difficulty and owes Smith $440,000. In an agreement between the two companies Horrible Company pays half its bill and Smith accepts a note for the rest. 4. July 8-A customer, the Very Bad Company, has gone bankrupt. It owed Smith $247,000. 5. July 10-Smith agrees to accept 9% Note in conversion of Ugly Inc.'s $545,000 Account Receivable 6. July 20- It has become known that another customer, Worse, Inc., who has not paid its outstanding $316,000 invoice in a year, is in severe financial difficulty 7. On September 1, Smith Company sold goods priced at $200,000 in exchange for a three-month note with an annual interest rate of 8%, all due at maturity. 8. Prepare the journal to record the above transaction 9. Prepare the journal entry to record monthly interest income 10. Prepare the entry made by Smith Company on maturity date of note to record collection of note and interest