Back on June 27, the company sold merchandise on account to LG Motors for $7,250. On August 11, the company determines that it cannot collect this amount since LG Motors has gone out of business. Prepare the journal entry using the direct write off method.

Moving forward, the company decides to utilize the Allowance for Doubtful Accounts Method to estimate its losses from uncollectable accounts. So on August 30, the company determines that approximately $2,500 of its remaining accounts receivable will be uncollectable. Prepare the journal entry to record this bad debt.

On September 15 the company finds out that $450 owed to them by Bliss Creations is uncollectible. Prepare the journal entry to take this amount from the Allowance for Doubtful Accounts

Due to the issues that the company is having collecting receivables, they decide to sell some off to a finance company. On September 20, they sold $5,255 of accounts receivable to Main Street Bank. The bank charged a 5% factoring fee for this transaction. Prepare the journal entry to record this sale.