Provide journal entries:

a. On December 7, Smart Touch delivers equipment to a small retailer on consignment. The cost of the equipment was $1,200 and the combined retail selling price is $2,200. If the retail shop sells the equipment, Smart Touch will pay 20% commission. Both companies use a perpetual inventory method.

b. On December 10, Smart Touch receives notification that APA Corp. from the November 21st transaction has gone out of business. Smart Touch estimates $4,700 allowance for uncollectible accounts and the bad debt expense, assuming that the company will not pay their balance owed.

c. On December 28, received notification that the consignee sold the inventory that was delivered on December 7.

d. On December 31, determined that APA will not be paying their outstanding balance. Wrote off the total amount of bad debt from APA Corp.