PART V - ACCOUNTS RECEIVABLE - UNCOLLECTIBLE ACCOUNTS (12 points) Instructions: Present the journal entries specified below; show supporting calculations. A ACCOUNTS RECEIVABLE=UNCOLLECTIBLE ACCOUNTS The trial balance of Gannon Company at December 31, 2017 includes the following: Debits Credits Accounts Receivable ... 100.000 Allowance for Doubtful Accounts 500 Sales (all on credit) 800.000 Sales Returns and Allowances 30,000 (1) If Gannon uses the aging method and estimates that $4,000 of receivables will be uncollectible, prepare the adjusting entry. (2) If Gannon estimates uncollectibles at 1% of net credit sales, prepare the appropriate adjusting entry (3) Assume that on February 10, 2018 the specific account of Mark Tresh with a balance of $600, is deemed uncollectible. Record the write-off. (4) Assume that on May 12, 2018 Tresh pays one-half of the above balance in full and is expected to pay the remainder within 30 days. Record the appropriate entries. B. SALE OF ACCOUNTS RECEIVABLE AND CREDIT CARD SALES Instructions: Present the journal entries specified below. (1) Price Company sells $400,000 of accounts receivable to National Factors, Inc. for cash less a 2.5% service charge. Record the sale. (2) Made Visa credit card sales totaling $7,500. A 2% service fee is charged by Visa. Record the sale on the books of Price Company PART VI NOTES RECEIVABLE (8 points) Instructions: Prepare journal entries to record the following events: July 1: Howell Company received an 8%, 4-month $30,000 note dated July 1 from a customer for the balance of his open account. Nov. 1: The note is honored and no interest has been previously accrued. Nov. 1: Assume instead that the note is dishonored by its maker and there is hope of future collection. Nov. 1: Assume instead that the note is dishonored and there is no hope of future collection