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ABC Corp. had the following events during its final three months of the fiscal year ending on May 31, 2017 (a) March 28: Sold S3,200 of merchandise to DEF Inc. on account. (b) March 29: DEF Inc. returned $600 of the merchandise purchased on March 28 (c) April 3: Sold S9,600 of merchandise to GHI Inc. (d) April 6: DEF Inc. paid off all his purchase (including those made in the past) (e) April 14: Wrote-off an old account for $6,000 which is related to sales made prior to March (f) April 25: (g) May 30: 1, 2017 JKL Ltd. purchased S24,000 of merchandise, paid half in cash ABC Corp. recovered $2,000 from the receivables that were written off on April 14 Additional information: Credit terms: 2/10, n/30 DEF Inc. has a balance of $2,000 outstanding as of March 1, 2017, from purchases made on January 10, 2007 . .ABC Corp records show the following account balances as of March 1,2007 S 17,000 1,000 191,000 100,000 Allowance for Doubtful Accounts (credit balance) Net Credit Sales Cash Sales Required 1. Prepare the journal entries to record the above transactions. 2. ABC Corp. uses the Aging of Accounts Receivables method to determine the amount of receivables that may not be collected in the future according to the following schedulte Estimated Uncollectible Rate Not yet Due 1.30 days past due 31-60 days past due More than 60 days overdue 5% 10% 15% 20% Determine the amount of receivables that may not be collected in the future, and prepare the journal entry to record the bad debt expenses on May 31, 2007. Show all your calculations. 3. Suppose Thompson uses the Percentage of Credit Sales method to estimate bad debts, using a bad debt rate of 1%. would ABC Corp. incur a higher or lower bad debt expense for the fiscal year ending on May 31,2007? Show your calculations