Part A: Prepare journal entries for the following transactions: 1. Wrote-off ABC Company account balance of $12,000 2. Received payment of $4,000 from XYZ Company and wrote-off the remaining balance of $2,000 3. Sold merchandise to DEF Company for $20,000, 2/10, n/30. The cost of the merchandise was $16,000 4. Collected $5,000 of the $12,000 previously owed from ABC Company 5. Received payment for one-half of amount owed from DEF Company within the discount period 6. Received the remaining amount owed by XYZ Company of $2,000 7. Wrote off the balance of the DEF Company account as uncollectible Part B: Recorded the adjusting entry for Bad Debt Expense under the following independent scenarios (assume net sales of $300,000 for the year and A/R balance of $50,000). Please also specify the balance in the allowance account after adjustment: A. The allowance account before adjustment has a credit balance of $3,000. Bad debt expense is estimated at 2% of net sales. B. The allowance account before adjustment has a credit balance of $3,000. An aging analysis of A/R indicates uncollectible accounts of $7,500. C. The allowance account before adjustment has a debit balance of $4,000. Bad debt expense is estimated at 3% of net sales. D. The allowance account before adjustment has a debit balance of $4,000. An aging analysis of A/R indicates uncollectible accounts of $7,500. Part C: Please answer the following questions: 1. Under the Allowance method, what type of entry results in the recording of an expense? 2. What is the effect on the financial statements of a write-off of a customer A/R? 3. Explain how the matching principle applies to this chapter