Prepare 2 T-Accounts, one for TA/R (using the gross amount) and one for the

Allowance for Doubtful Accounts. Use the information given below to

complete these 2 T-Accounts.

(i) In 2007, if collections on TA/R totaled $1,123, 209, write-offs of

TA/R totaled $8,000, and collection of a TA/R previously written off

of $40, what is the amount of Bad Debt Expense for year-end 2007?

(ii) Record the following journal entries:

1. Sales to customers on account during the calendar year (use the

Net Sales figure given in the case).

2. Collections of TA/R of $1,123,209.

3. Collection of TA/R previously written off of $40.

4. Write-off of TA/R of $8,000.

5. Bad Debt Expense as an adjusting entry for the year-end.