Part $1$:

Sherman Oakes, Inc. uses the Allowance Method for uncollectible accounts and has the following information

in its ledger $($all balances are normal$)$:

Assuming the company's aging schedule estimates uncollectible accounts to be $$37,000,$ do the following:

$($Label each figure. Although not required, $"T"$ accounts are encouraged$)$

a$.$ Determine the ending balance of the Allowance for Uncollectible Accounts $($after the

adjusting entry is posted$).$

b$.$ Journalize the adjusting entry to adjust the Allowance for Uncollectible Accounts.

Ignoring the previous assumption, now assume the company estimates that $2\%$ of sales will be uncollectible

and do the following: $($Label each figure. Although not required, $"$T$"$ accounts are encouraged$)$

c$.$ Journalize the adjusting entry to adjust the Allowance for Uncollectible Accounts.

d$.$ Determine the ending balance of the Allowance for Uncollectible Accou