P9-36B Dialex Watches completed the following transactions during 2007 and 2008: 2007 Estimated that uncollectible-account expense for the year was 1% on credit sales of $400,000, and recorded that amount as expense. Use the allowance method. Dec. 31 31 Made the closing entry for uncollectible-account expense. 2008 Jan. 17 June 29 Aug. 6 Sold inventory to Mitch Vanez, $600, on account. Ignore cost of goods sold. Wrote off the Mitch Vanez account as uncollectible after repeated efforts to collect from him. Received $600 from Mitch Vanez, along with a letter stating his apology for paying late. Reinstated Vanez's account in full and recorded the cash collection. Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $1,700; Marie Monet, $1,300. Dec. 31 2008 Dec. 31 Estimated that uncollectible-account expense for the year was 1% on credit sales of $480,000, and recorded that amount as expense. Made the closing entry for uncollectible-account expense. 31 Requirements 1. Open general ledger accounts for Allowance for Uncollectible Accounts and Uncollectible-Account Expense. Keep running bal- ances. All accounts begin with a zero balance. (pp. 80, 468) 2. Record the transactions in the general journal, and post to the two ledger accounts. (pp. 460-464, 205) 3. The December 31, 2008, balance of Accounts Receivable is $139,000. Show how Accounts Receivable would be reported on the balance sheet at that date. Use the first reporting format at the top of page 461