Instructions a. Record the above transactions. Ignore credit card fees and any entries to merchandise inventory and cost of goods sold, for the purposes of this question. b. Set up T accounts for the Accounts Receivable general ledger (control) account, the Allowance for Doubtful Accounts general ledger account, and the Accounts Receivable subsidiary ledger accounts. Post the journal entries to these accounts. c. Albert's estimated that 10% of accounts receivable is not collectible. Record the required adjustment to the Allowance for Doubtful Accounts. d. Prepare a list of customers and the balances of their accounts from the subsidiary ledger. Prove that the total of the subsidiary ledger is equal to the control account balance. Taking It Further Albert Erickson, the owner of Albert's, is considering changing his customer payment policy. He wants to discontinue offering credit to his customers and accept only bank credit and debit cards as well as cash. Provide Albert with a list of advantages and disadvantages for the proposed policy change. Jan. 3 Brown's Repair paid $18,000 on its account. 4 Custom Repair paid $1,400 on its account that had previously been written off. 8 Jen's Auto Body purchased $3,800 of merchandise on account. 9 Antique Auto Repair paid cash for $1,500 of merchandise. 18 Jen's Auto Body returned $800 of merchandise 19 Luxury Autos paid $13,200 on its account. 20 Jen's Auto Body paid $25,000 on its account. 23 Brown's Repair purchased $5,600 on account. 25 Custom Repair purchased $10,000 of merchandise on Visa. 26 Luxury Autos purchased $18,000 of merchandise on account. 31 Albert's determined that the Best Auto Repair account receivable was not collectible. Problems: Set A Record accounts P8.1A (L0 1, 2) AP At December 31, 2021, the general ledger and subsidiary ledger for Albert's, a small auto receivable parts store, showed the following: transactions. Post to subsidiary and general Iedgers Accounts Receivable and prepare General Ledger subsidiary Ledger adjusting entry. Accounts receivable $75,000 Best Auto Repair $ 3,800 Allowance for doubtful accounts 3,750 Brown's Repair 23,000 Custom Repair 0 Jen's Auto Body 35,000 Luxury Autos 13,200 Total $75,000