Assignment 2: Receivables and Plant Assets Due Date: Friday 2/04/2021 at 6:00pm Question 1: Presented below are selected transactions of Federer Company. Federer sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 3 9 Sold merchandise on account to Lynda Company for $3,800, terms 2/10, n/30. Lynda Company returned merchandise worth $500 to Federer. Federer collected the amount due from Lynda Company from the March 1 sale. Federer sold merchandise for $200 in its retail outlet. The customer used his Federer credit card. Federer added 1.5% monthly interest to the customer's credit card balance. 15 31 Instructions Prepare journal entries for the transactions above. Prepare journal entries for the transactions above. Question 2: Amazon has been in business for several years. At the end of the current year, the ledger shows: Accounts Receivable Sales Revenue Allowance for Doubtful Accounts $ 310,000 Dr. 2,200,000 Cr. 4,100 Cr. Bad debts are estimated to be 4% of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts