E8-5 Godfreid Company has accounts receivable of $95,400 at March 31, 2017, Credit Determin terms are 2/10, n/30. At March 31, 2017, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percent basis for estimating uncollectible accounts. The company's estimates of shown below. Balance, March 31 Estimated Percentage Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due 2017 2016 Uncollectible $65,000 $75,000 8,000 2,400 1,100 $95,400 $86,500 12,900 10,100 7,400 30 50 Instructions (a) Determine the total estimated uncollectibles. (b) Prepare the adjusting entry at March 31, 2017, to record bad debt expense. (c) Discuss the implications of the changes in the aging schedule from 2016 to 2017. E8-6 On December 31, 2016, when its Allowance for Doubtful Accounts had a debit Prepare e balance of $1,400, Dallas Co. estimates that 9% of its accounts receivable balance of uncollec $90,000 will become uncollectible and records the necessary adjustment to Allowance for recovery Doubtful Accounts. On May 11, 2017, Dallas Co. determined that B. Jared's account was (LO2), AP uncollectible and wrote off $1,200. On June 12, 2017, Jared paid the amount previously written off Instructions Prepare the journal entries on December 31, 2016, May 11, 2017, and June 12, 2017. E8-7 On March 3, Plume Appliances sells $710,000 of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 4% of the amount of receivables sold. Prepare e recevab (LO 2), AP Instructions Prepare the entry on Plume Appliances' books to record the sale of the receivables. E8-8 On May 10, Keene Company sold merchandise for $4,000 and accepted the customer's Best Business Bank MasterCard. At the end of the day, the Best Business Bank Prepare (LO 2), AP MasterCard receipts were deposited in the company's bank account. Best Business Bank charges a 3.8% service charge for credit card sales. Instructions Prepare the entry on Keene Company's books to record the sale of merchandise. E89 On July 4, Mazes Restaurant accepts a Visa card for a $250 dinner bill. Visa charges Prepare a 4% service fee. (LO 2), AP Instructions Prepare the entry on Mazie's books related to the transaction