At each calendar year-end, Booyah Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2010, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2010 under the assumption that the Allowance for Doubtful Accounts has (a) a $415 credit balance before the adjustment and (b) a $291 debit balance before the adjustment. Match each of the following terms a through g with the appropriate definitions 1 through 7. A. Bad debts B. Aging of accounts receivable C. Interest D. Accounts receivable E. Allowance for doubtful accounts F. Realizable value G. Matching principle _____ 1. Amounts due from customers arising from credit sales. _____ 2. A process of classifying accounts receivable by how long it is past its due date for the purpose of estimating the amount of uncollectible accounts. _____ 3. The expected proceeds from converting an asset into cash. _____ 4. The accounts of customers who do not pay what they have promised to pay a company. _____ 5. The accounting principle that requires expenses to be reported in the same period as the sales they helped to produce. _____ 6. A contra asset account with a balance approximating the amount of accounts receivable expected to be uncollectible. _____ 7. The cost of borrowing money for a borrower: alternatively, the profit from lending money for a lender. Newton Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Newton Company wrote off the $3,000 uncollectible account of its customer, P. Best. On July 10, Newton received a check for the full amount of $3,000 from P. Best. Prepare the (a) May 3 journal entry Newton makes to write off the debt and the (b) July 10 journal entry or entries Newton makes to record the recovery of the bad debt