ALL of the transactions/questions in this section are related to each other, i.e. if one transaction decreases Allowance for Doubtful Accounts the balance will change for the next question. Starting Information: On July 31, 2019, the company's end-year, Diamond Drills had the account balances as follows: Accounts Receivable $340 00 (DR) Allowance for Doubtful Accounts 5 200 (CR)

a. Diamond Drills' credit department determined that $5 900 should be written off. Record the transaction to do this.

b. Diamond Drills' credit department has also determined that 95% of total accounts receivable will be collected. What should be the NEW balance in Allowance for Doubtful Accounts? (HINT: the previous transaction may have affected the account balances given)

c. Prepare the necessary entry for Bad Debts Expense.

d. This is a required question On August 15th, Diamond Drills received $500 from an account that had been previously written off. Record the required journal entry(ies).

e. What is the balance in Allowance for Doubtful Accounts on August 16th?