Example : Skantz Corporation started business on January 1" 2012. Its reporting period is the calendar quarter le. it prepares financial statements (by closing its books) at the end of each calendar quarter the first quarter ends on March 31, 2012, the second on June 30, 2012 and so on. First Quarter Skantz reported sales revenue of $1.5 million. It did have any write-offs of accounts receivable ie. it did not identify any specific customer accounts as uncollectible. At the end of the first quarter, its Accounts Receivable balance was $180,000. An aging analysis of the accounts receivable balance revealed the following Accounts Receivable Balance on March 31 Month of Sale Estimated Percentage Uncollectible Janua February March Total 30,000 $40,000 $110,000 $180,000 5% 2% 1% to u 340 o Second Quarter Skantz reported sales revenue of $2.5 million. During the second quarter it identified 3 customer accounts that together owed Skantz $3,000 as uncollectible and wrote the second quarter, its Accounts Receivable balance was $300,000. An aging analysis of receivable balance revealed the following: the amount off. At the end of the accounts Accounts Receivable Estimated Percentage Balance on June 30 $2,500 $6,000 $20,000 $51,500 $80,000 $140,000 Month of Sale Uncollectible 50% 20% 1096 5% 2% 196 January February March ril Ma June Total $300,000 Required: Prepare appropriate journal entries for Skantz for the first two quarters in each of the independent scenarios listed below. 1. Skantz uses the direct write-off method (used for tax reporting) 2. Skantz uses the allowance method, and estimates bad debt expense as 0.25% of sales. 3. Skantz uses the allowance method, and estimates bad debt expense using an aging analysis receivables