At December 31, 2017, Hawke Company reports the following results for its calendar year.

Cash sales	$	1,413,490
Credit sales		3,021,000

In addition, its unadjusted trial balance includes the following items.

Accounts receivable

$

915,363

debit

Allowance for doubtful accounts

26,920

debit

1.

Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 2.0% service charge for sales on its credit card. Access deducts a 1.0% service charge for sales on its card. Mayfair completes the following transactions in June.

June		4		Sold $700 of merchandise on credit (that had cost $280) to Natara Morris.
		5		Sold $7,400 of merchandise (that had cost $2,960) to customers who used their Zisa cards.
		6		Sold $5,880 of merchandise (that had cost $2,352) to customers who used their Access cards.
		8		Sold $4,580 of merchandise (that had cost $1,832) to customers who used their Access cards.
		13		Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $502 balance in McKees account stemmed from a credit sale in October of last year.
		18		Received Morriss check in full payment for the purchase of June 4.

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1a. 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1c.

4.

Dexter Company applies the direct write-off method in accounting for uncollectible accounts.

March		11		Dexter determines that it cannot collect $8,500 of its accounts receivable from its customer Leer Company.
		29		Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt.

Prepare journal entries to record the above selected transactions of Dexter.

1

Record write off of Leer Company account.

2

Record the reinstatement of an account previously written off.

3

Record the cash received on account.

5. At year-end (December 31), Chan Company estimates its bad debts as 0.90% of its annual credit sales of $908,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $454 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions.

1

Record the estimated bad debts expense.

2

Wrote off P. Park's account as uncollectible.

3

Reinstated Park's previously written off account.

4

Record the cash received on account.