Q2: Answer each of the following independent sections: A- The records od ABC Company on Dec.31st, 2020 shows Accounts Receivable $300,000, Sales $2,400,000, and Sales Returns and Allowances $150,000. Instructions: (a) Using the direct write off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming ABC determines that Baraka Company's $3,400 balance is uncollectible. (b) If ABC uses the allowance method. Assuming the Allowance for Doubtful Accounts has a credit balance of $4,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 2% of net sales, and (2) 15% of accounts receivable. (c) IF ABC company uses the allowance method. Assuming the Allowance for Doubtful Accounts has a debit balance of $470 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.8% of net sales and (2) 8% of accounts receivable. (d) Which method is required by the accounting principles? why? [7 Marks] b- Presented below are two independent cases. (a) On May 10, Manama Incorporation sold $900,000 of its receivables to Hamala Factors Inc. Hamala Factors assesses a finance charge of 2% of the amount of receivables sold. Prepare the entry on Manamas' books to record the sale of the receivables. (a) On June 10, Cairo Company sold merchandise for $10,000 and accepted the customer's BBK Bank MasterCard. BBK Bank charges a 3% service charge for credit card sales. Prepare the entry on Cairo Company's books to record the sale of merchandise. (b) What do some companies sell their receivables? (c) Why do most companies accept credit cards?