Part 2 -35% Receivables As of December 31, 2019, Milwaukee Bags Inc. reported the following information on its balance sheet: Accounts Receivable 1,000,000 Less: Allowance for Doubtful Accounts 150,000 During 2020, the company had sales and collections for the following amounts: 2,700,000 1. Sales on account $ 2. Collections of accounts receivable $ 2,300,000 The company has December 31 as a year-end. It keeps track of all receivables by creating specific A/R accounts showing the name of the person or company (for example: A/R - J. Smith or A/R - TexCo). Required: 1. On December 31, 2020, it is now time to estimate the uncollectible (or "doubtful") accounts. For the following two (2) independent methods, determine: a) the bad debt expense; b) the journal entry so that the books are adjusted with the right estimation: 10 marks 1.1 Percent-of-Sales method: 6% of sales on account 1.2 Percent-of-Accounts-Receivable method: 15% of accounts receivable 2. What other method could you suggest to estimate the amount of uncollectible accounts? Briefly explain how it is calculated (in words - no numbers) and why it might be a better method. 5 marks TexCo). Required: 1. On December 31, 2020, it is now time to estimate the uncollectible (or "doubtful") accounts. For the following two (2) independent methods, determine: a) the bad debt expense; b) the journal entry so that the books are adjusted with the right estimation: 10 marks 1.1 Percent-of-Sales method: 6% of sales on account 1.2 Percent-of-Accounts-Receivable method: 15% of accounts receivable 2. What other method could you suggest to estimate the amount of uncollectible accounts? Briefly explain how it is calculated (in words - no numbers) and why it might be a better method. 5 marks 3. On January 10, 2020, Mauricio Seguro, a good client, called and said he would not be able to pay his invoice of $2,500 because he is about to file for bankruptcy. Prepare the journal entry in relation with this event. 4 marks 4. On January 20, 2020, Vikko Corp signed a promissory note for the $4,000 invoice still unpaid since November. It is a 3-month note with an interest rate of 8%. Journalize the following two entries: a) on January 20, for the note being issued; b) at maturity. 10 marks 5. On January 31, 2020, Milwaukee Bags received the full maturity value for a note receivable that was issued on May 31, 2019 for $5,000 at a 6% interest rate. Assume accrued interest was recorded properly in the last year-end. Journalize the collection of the note on January 31. 6 marks