Exercise 1: Ahmed company using the allowance for doubtful account method to account for uncollectible accounts. The company has the following transactions. a) On Jan 1, 2010 Ahmed company sold merchandise on account to Lama company $250,000. b) During the year, the company collected 100,000 from Lama Company. c) On Dec 31, 2010, the credit manager of Ahmed company expected that 50,000 will be uncollectible. d) Ahmed company authorizes a write-off of the $2,000 balance owed by Lama company on Feb 1, 2011 e) On June 1, Ahmed company collected 1000 from Lama company that has previously written off. Prepare the appropriate journal entries Exercise 2: Brule Co. has the following information: credit sales are 200,000, sales return and allowance are 10%, account receivables are $300,000, and allowance for a doubtful account has a debit balance of $10,000. Calculate bad debt expense and prepare the appropriate journal entry under the following cases. a) Bad debts are estimated to be 5% of credit sales b) Bad debts are estimated to be 5% of receivables