Jan. 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $4,400 cash. Feb. 25 Mr. Kendalls Boy Scout troop participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $2,900, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $2,400. Great Adventures provides these services on account. Feb. 28 The Boy Scout troop pays the full amount owed, less the 4% quick-payment discount. Mar. 19 Reynolds Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $3,400, and Reynolds agrees to pay within 30 days Mar. 27 Reynolds pays the full amount owed, less the 4% quick-payment discount. Apr. 7 Several men from the Elks Lodge decide to participate in a TEAM adventure. They pay $6,900, and the event is scheduled for the following week. Apr. 14 The TEAM adventure is held for members of the Elks Lodge. May. 9 Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $5,400, and Myers agrees to pay within 30 days. Jun. 1?30 Several MBA groups participate in TEAM adventures during June. Great Adventures provides services on account for $21,000 to these groups, with payment due in July. Jun. 30 Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 7% note receivable to replace the existing account receivable.

2. As of June 30, 2019, Great Adventures finishes its first 12 months of operations. If Suzie wants to prepare financial statements, part of the process would involve allowing for uncollectible accounts receivable.

a. Suppose Suzie estimates uncollectible accounts to be 8% of accounts receivable (which does not include the $5,400 note receivable from Myers Manufacturing). Record the adjustment for uncollectible accounts on June 30, 2019