Exercise 3: The following selected transactions relate to ABC Company: March, 1 Sold 20,000 of merchandise to Potter plc, terms 2/10, n/30. March, 10 Received payment in full from Potter plc for balance due. March, 13 Made Dylan plc credit card sales for 13,200. April, 11 Sold accounts receivable of 8,000 to Harcot Factor. Harcot Factor assesses a service charge of 2% of the amount of receivables sold. May, 10 Credit sales recorded during the first 6 months total 2,000,000. The bad debt percentage is 1% of credit sales. At May 31, the balance in the allowance account is credit 3,500 before adjustment. June, 20 Wrote off as uncollectible 16,000 of accounts receivable. Dylan uses the percentage-of-sales basis to estimate bad debts. Instructions Prepare the journal entries for the above transactions