Hecter Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

		Days Past Due
	Total		0	1 to 30	31 to 60	61 to 90	Over 90
Accounts receivable	$	190,000		$	132,000		$	30,000		$	12,000		$	6,000		$	10,000
Percent uncollectible					1	%		2	%		4	%		7	%		12	%

a.	Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 3.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.(Omit the "$" sign in your response.)

Allowance for doubtful accounts

$

b.	Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $300 credit.(Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Dec 31	(Click to select)Accounts receivableStore suppliesEntertainment expenseSales expense and allowanceAllowance for doubtful accountsBad debts expenseNotes payablePrepaid insurance
	(Click to select)Prepaid insuranceNotes payableAllowance for doubtful accountsBad debts expenseStore suppliesAccounts receivableEntertainment expenseSales expense and allowance

c.	Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 debit.(Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Dec 31	(Click to select)Accounts receivableSales expense and allowanceAllowance for doubtful accountsBad debts expenseNotes payablePrepaid insuranceEntertainment expenseStore supplies
	(Click to select)Prepaid insuranceNotes payableSales expense and allowanceBad debts expenseAllowance for doubtful accountsAccounts receivableStore suppliesEntertainment expense

Lopez Company began operations on January 1, 2010. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.

2010
a.	Sold $1,351,000 of merchandise (that had cost $975,400) on credit, terms n/30.
b.	Wrote off $20,000 of uncollectible accounts receivable.
c.	Received $674,000 cash in payment of accounts receivable.
d.	In adjusting the accounts on December 31, the company estimated that 1.00% of accounts receivable will be uncollectible.

2011
e.	Sold $1,595,800 of merchandise (that had cost $1,278,700) on credit, terms n/30.
f.	Wrote off $26,300 of uncollectible accounts receivable.
g.	Received $1,280,900 cash in payment of accounts receivable.
h.	In adjusting the accounts on December 31, the company estimated that 1.00% of accounts receivable will be uncollectible.

Required:

Prepare journal entries to record Lopezs 2010 and 2011 summarized transactions and its year-end adjustments to record bad debts expense.(The company uses the perpetual inventory system.)(Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

2010

	General Journal	Debit	Credit
a.	(Click to select)Interest expenseAllowance for doubtful accountsAccounts receivableNotes payableCashSalesAccounts payableBad debts expense
(Click to select)Allowance for doubtful accountsSalesInterest expenseAccounts receivableNotes payableAccounts payableCashBad debts expense
	(Click to select)Bad debts expenseAllowance for doubtful accountsCashSales revenueMerchandise inventoryCost of goods soldNotes payableAccounts payable
	(Click to select)CashBad debts expenseMerchandise inventorySales revenueAllowance for doubtful accountsAccounts payableNotes payableCost of goods sold
b.	(Click to select)Bad debts expenseSales revenueAccounts receivableMerchandise inventoryAllowance for doubtful accountsCashAccounts payableCost of goods sold
	(Click to select)Merchandise inventorySalesCost of goods soldInterest expenseAllowance for doubtful accountsAccounts receivableCashBad debts expense
c.	(Click to select)Merchandise inventoryCost of goods soldSalesAllowance for doubtful accountsAccounts receivableAccounts payableBad debts expenseCash
	(Click to select)Merchandise inventoryCashAccounts payableSalesAccounts receivableCost of goods soldAllowance for doubtful accountsBad debts expense
d.	(Click to select)SalesCashAllowance for doubtful accountsBad debts expenseAccounts receivableAccounts payableMerchandise inventoryCost of goods sold
	(Click to select)Accounts receivableSalesCost of goods soldCashBad debts expenseMerchandise inventoryAllowance for doubtful accountsAcounts payable

2011

	General Journal	Debit	Credit
e.	(Click to select)Allowance for doubtful accountsInterest expenseSalesBad debts expenseAccounts receivableAccounts payableCashNotes payable
	(Click to select)Interest expenseAllowance for doubtful accountsSalesCashNotes payableAccounts receivableAccounts payableBad debts expense
	(Click to select)Merchandise inventoryCost of goods soldAllowance for doubtful accountsCashSales revenueAccounts payableNotes payableBad debts expense
	(Click to select)Notes payableAccounts receivableCashAccounts payableSales revenueBad debts expenseMerchandise inventoryAllowance for doubtful accounts
f.	(Click to select)Bad debts expenseAccounts payableCashCost of goods soldAllowance for doubtful accountsAccounts receivableSalesMerchandise inventory
	(Click to select)Cost of goods soldBad debts expenseAllowance for doubtful accountsMerchandise inventoryAccounts payableSalesCashAccounts receivable
g.	(Click to select)Allowance for doubtful accountsBad debts expenseCost of goods soldMerchandise inventoryAccounts payableCashAccounts receivableSales
	(Click to select)Accounts receivableBad debts expenseAllowance for doubtful accountsAccounts payableSalesCost of goods soldCashMerchandise inventory
h.	(Click to select)Merchandise inventoryCashAccounts payableAccounts receivableCost of goods soldAllowance for doubtful accountsBad debts expenseSales
	(Click to select)Merchandise inventoryBad debts expenseAccounts payableCost of goods soldSalesAccounts receivableCashAllowance for doubtful accounts