Mastery Problem: Receivables Fan-Tastic Sports Gear Inc. You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods ar a has been drafting the journal entries since January. You are examining the accounting records before finalizir accounts receivable transactions that you are reviewing. Journal Date Description Debit Credit Jan. 17 Sales 9,800 Bad Debt Expense 9,800 9,800 17 Bad Debt Expense Accounts Receivable-cu's Sports Corp. 9,800 21 Cash Bad Debt Expense Accounts Receivable-Four Seasons Sportswear Co. 10,600 2.300 12.900 Feb. 15 Accounts Receivable-Healthy Running Inc. Bad Debt Expense Sales 3,000 500 3,500 2,300 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense 2.300 2.300 4 Cash Bad Debt Expense 2.300 5,540 13 Cash Accounts Receivable-Barb's Best Gear 5,540 All work saved 3,000 500 Feb. 15 Accounts Receivable-Healthy Running Inc. Bad Debt Expense Sales 3,500 2.300 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense 2,300 2.300 4 Cash Bad Debt Expense 2.300 5,540 13 Cash Accounts Receivable-Barb's Best Gear 5,540 20,870 31 Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivable-cu's Sports Corp. Accounts Receivable-Get Your Gear Inc. Accounts Receivable-Ready-2-Go 5,250 4,100 2.780 7,050 1.690 Recording Uncollectable Receivables Review the accounts receivable transactions shown in the general journal on the Fan-Tastic Sports 1. How does the company appear to be handling uncollectible receivables? allowance method 2. You have made the following observations during your review of the accounting records. In decid observations are key factors in your decision? a. Most of the company's sales are on account b. An analysis of the company's accounts receivable shows more accounts will be uncollectible than All work saved ATV - Your Gari Acounts Receivable Heady 2 17050 1.690 Hacarding collectable Receivables Review the accounts receivable tractions shown in the general Journal Fantastie portierine panel 1. How does the compear to be handling uncollective allowed 2 have made the following observation during your revol the accounting record in doing what sortering collectible recevable grite which of these actors in your dedant Most of the company's are on account Annals of the commons receivable show more accounts will be collectible to defectionare are only used Compast year were $3,000,000 and are expected to increase by $360,000 then 4. Bad det andere 1. The company sell primarily to smaller businesses who are more to have cash flow problems. to record badet ter making the beations previously listed in 2). You have recommended that Fantastic Sports Gear in the analysis of receivable method