P12-4B. Simon Company of Bathurst completed the following transactions: 2021 Jan. 8 Sold merchandise on account to Lowe's Supply, $1,900. 15 Mar. 14 Apr. 9 June 13 Wrote off the account of Kevin Reese as uncollectible because of his death, $700. Received $300 from J. James, whose account had been written off in 2020. The account was reinstated and the collection recorded. Received 20% of the $5,000 owed by Long Drug. The remainder was written off as uncollectible. The account of Morse's Garage was reinstated for $3,100 (amount received). The account was written off three years ago. Oct. 18 Prepared a compound entry to write the following accounts off as uncollectible: Sal's Diner, $800; Ring Auto, $1,300; Neel's Hardware, $800. Nov. 12 Dec. 31 31 Sold merchandise on account to Able Roy, $1,950. On the basis of an aging of Accounts Receivable, it was estimated that $8,000 would be uncollectible out of a total of $170,000 in Accounts Receivable. Closed Bad Debts Expense to Income Summary. 31 Receivable. 575 Group B Problems Closed Bad Debts Expense to Income Summary. Additional Data Account No. Balance Dr./Cr. Allowance for Doubtful Accounts 114 $3,300 Cr. Jan. 1, 2021 Income Summary 312 Bad Debts Expense 612 Journalizing and posting adjustments for bad debts expense and write-offs and recovery based on balance sheet approach; partial balance sheet prepared (60 min) Check Figure Total Current Assets $284,200 Required a. Journalize the transactions. b. Post to Allowance for Doubtful Accounts, Income Summary, or Bad Debts Expense as needed. c. Prepare a current assets section of the balance sheet. Ending balances needed: Cash, $24,000; Accounts Receivable, $170,000; Office Supplies, $3,000; Merchandise Inventory, $94,000; Prepaid Rent, $1,200; and your calculated balance for Allowance for Doubtful Accounts. 575 R