Mini-Project #4 Receivables STUDENT ROLE: You are employed with Johnson Accounting Firm as an entry-level accountant, and are about to complete your first year of employment. Today you have been assigned a new client-Baby Couture, Inc. CLIENT PROFILE: Baby Couture, Inc. is a local manufacturer of clothing and accessories for children, and has been in business since 2014. They serve newborns through 6 year olds. Baby Couture does not stores, but instead sells directly to retail stores throughout the Midwest. Baby Couture's clients include smaller, locally owned stores, as well as larger national retail chains. Your employer (Johnson Accounting Firm) has been providing accounting services to Baby Couture, Inc. since it started business in 2014 providing monthly compilations on an accrual basis. Although Baby Couture has experienced an increase in overall sales, it is experiencing a decline in cash collections and suspects it might need to modify its credit policy. Currently, Baby Couture offers all customers credit terms of 1/20, net 30. And, it does not charge interest for customers who pay after 30 days. operate any of its own retail ASSIGNMENT: Your supervisor has assigned you four separate tasks, all designed to give Baby Couture additional insight into its credit policy and financial reporting of bad debt. The documents needed for this task are all linked in the Mini- Project #4 Blackboard folder Task 1: Using the trial balance available in Blackboard, journalize year-end bad debts using the Percentage of Sales method, assuming that 7% of net sales are uncollectible Using the account balances provided in Blackboard, prepare an Adjusted Trial Balance for December 31, 2016, and prepare an Income Statement, Retained Earnings Statement and Balance Sheet. Task 2: Ignoring your work from Task 1, access the trial balance available in Blackboard and journalize year-end bad debts using the Percentage ofReceivables method, assuming that 10% of accounts receivable are uncollectible. Using the account balances provided in Blackboard, prepare an Adjusted Trial Balance for December 31, 2016, and prepare an Income Statement, Retained Earnings Statement and Balance Sheet