FYI: Burgundy transactions are notes receivable transactions and black transactions are bad debt transactions. Journalizing is done in chronological order.

$15-$Oct Receive $$800$ cash from Jazz Jones, a client, and invoiced the remainder $$1,300,$ due in $30$ days. This is a service business. The revenue account is service reven

$30-$Oct Write off three long overdue accounts receivable from on account clients: Kathy Carmichael $$500,$ Carl Canover $$1,000$ and

Daisy Williams $$300.$ You use the GAAP compliant allowance method to write off accounts.

$1-$Nov Received a one month $$3,000(6\%$APR$)$ note receivable from Colin Arnolds, an accounts receivable client.

$14-$Nov Receive the amount due on account from client, Jazz Jones $($October $15$ sale$)$

$1-$Dec Collect payment from Colin Arnolds for the maturity value of the November $1$ note receivable.

$13-$Dec Receive a $120$ day $$5,000(8\%$ APR$)$ note receivable on account from Allied Amusement for the sale of travel services.

$15-$Dec Receive $$300$ from client Daisy Williams. This account was written off on October $30.$ Make a journal entry to

reinstate the account and a journal entry to record the $$300$ cash payment.

$31-$Dec The fiscal year ends. Make the journal entry for accrued interest on the December $13$ note receivable from Allied Amusement.

$31-$Dec Post the journal entries to the t$-$accounts below and find the balances. $($HINT: This is not a journal entry$)$

$31-$Dec You complete an aging of accounts receivable and estimate $$9,000$ will be uncollectable in the following year. Journalize the

adjusting entry. HINT: t$-$account balances must be calculated before you make this entry.

$31-$Dec What if you estimate the uncollectable accounts based on credit sales instead of aging of accounts receivable. Given the following

information journalize this adjusting entry. During the year there was $$500,000$ in credit sales. Based on the previous years, the

uncollectable amount is $2\%$ of credit sales. Record this entry, but DO NOT post it to the t$-$accounts.

$($NOTE: In the business world, you would make only one of these last two transactions, not both.$)$