At January 1, 2024, Mount Pleasant Flagpoles had Accounts Receivable of $34,000 and Allowance for Bad Debts had a credit balance of $4,000.

Record the following transactions assuming the allowance method is used:

1. Sales of $172,000 ($157,000 on account, $15,000 cash) 2. Collections on account of $126,000 3. Write offs of uncollectible receivables of $2,700

Bonus questions: 4. (Up to 5 points) - Assuming a 10% estimate of uncollectiblity and the Percentage of Sales method, how much should the ending balance of the Allowance for bad debts be? (Remember the beginning balance and adjustments) 5. (Up to 7 points) - If the starting balance had been $3,000 debit in the Allowance and management instead used the Aging of Accounts method and determined the ending balance should be $20,000, what entry would need to be made?