I CAN NOT PREPARE THE ADJUSTING ENTRIES, PLEASE HELP ME SOLVE THIS PROBLEM

Alexander estimates uncollectible accounts under the Allowance Method at 1 % of net sales. All of Alexander's sales are made on account. Alexander's General Ledger shows the following selected account balances on December 31, XXX1, before adjustment:

Accounts Receivable

Allowance for Uncollectible Accounts

31,000

200

Sales

Sales Returns and Allowances

140,000

10,000

The Accounts Receivable Ledger contains these debit balances for its customers:

Hayes

$1,400

Landen

700

O'Neal

900

Shannon

600

Other customers

27,400

XXX2

On May 19, Shannon's account is deemeduncollectible and is written off. On July 7, Hayes goes bankrupt and its account is written off. Sales total $170,000, and sales returns are $15,000.Alexander uses the same estimated uncollectible rate as it did the previous year.

XXX3

On March 26, a recovery is made from Shannon, and a check is received in the amount of $600.

Prepare the following entries.

A.Adjusting entry for uncollectible accounts at end of XXX1

B.Write-off entries for XXX2

C.Adjusting entry for uncollectible accounts at end of XXX2

D.Recovery entries in XXX3

Problem 39-1 (continued)

Part A:Adjusting Entry for Uncollectible Accounts at End of XXX1

DATE

ACCOUNTS AND EXPLANATION

REF.

DEBIT

CREDIT

Dec.

31

To record adjustment for uncollectibles

Computations:

Part B:Write-Offs Entries for XXX2

DATE

ACCOUNTS AND EXPLANATION

REF.

DEBIT

CREDIT

May

19

To record write-off under allowance method

Jul.

7

To record write-off under allowance method

Part C:Adjusting Entry for Uncollectible Accounts at End of XXX2

DATE

ACCOUNTS AND EXPLANATION

REF.

DEBIT

CREDIT

Dec.

31

To record adjustment for uncollectibles

Computations:

Part D:Recovery Entries for XXX3

DATE

ACCOUNTS AND EXPLANATION

REF.

DEBIT

CREDIT

To adjust for uncollectibles