BE9-7 Johnson Co. uses the percentage-of-receivables basis to record bad debts expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $450,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,500 (a) Prepare the adjusting journal entry to record bad debts expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $1,500, determine the amount to be reported for bad debts expense. BE9-8 Presented below are two independent transactions. (a) Ryan's Restaurant accepted a Visa card in payment of a $150 lunch bill. The bank charges a 4% fee. What entry should Ryan's make? (b) Shultz Company sold its accounts receivable of $60,000. What entry should Shultz make, given a service charge of 3% on the amount of receivables sold? BE9-9 Compute interest and find the maturity date for the following notes. Date of Note Principal Interest Rate (%) Terms June 10 $80,000 6% 60 days (b) $50,000 7% 90 days April 27 $12.000 8% 75 days July 14