C. On July 15, 2016, Decorators Unlimited receives a cheque for $3,000 in full payment from B. Stinson for the account previously written off on Feb 1. Record both the recovery and the payment. - 1s set of Journal Entry: Reimberse two accounts first - 2nd set of Journal Entry : Cheque = Bank, Credit A/R 5. The Chowdhury Landscaping Company uses the balance sheet method to determine bad debts. The ageing schedule at December 31, 2015 is: Number of Days Outstanding Total 0-30 31-60 61-90 90-120 > 120 Accounts Receivable 20,000 5.000 6,000 2,500 6.000 39,500 Estimated % Uncollectible 2% 3% 6% 12% 25% Estimated Bad Debts 400 a. Calculate the total estimated bad debts. b. If the balance in the Allowance for Doubtful Accounts account is $2,000, record the journal entry to adjust for the bad debts at December 31, 2015. For the past 5 entries based on 30, 60 90 120 and 120+days, you made journal entries as Dr. Allowance for Doutful Account and Cr Bad Debt expense... At the end your ADA is 2000 actually. So make adjustment to this (Counter entries to make the balance correct as 2000)