Question 1: At the end of 2020, Amman Company has accounts receivable of $600,000 and an allowance for doubtful accounts of $50,000. On March 15, 2021, the company learns that its receivable from Ahmad Co. is not collectible, and management authorizes a write-off of $7,000. Instructions (a) Prepare the journal entry to record the write-off. (b) Assume that on May 5, 2021, Amman Company receives payment of $7,000 in full from Ahmad Co. Prepare the journal entries to record this transaction. &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&& Question 2: XYZ Company uses the percentage-of-receivables basis to record bad debts expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $60,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $500. Instructions Prepare the adjusting journal entry to record bad debts expense for the year. &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&& Question 3: Red Co. accept both its own and national credit cards. During the year the following selected summary transactions occurred. Jan.25 Made Red credit card sales totaling $55,000. 28 Made Visa credit card sales (service charge fee 2%) totaling $10,000. Feb.20 Collected $50,000 on Red credit card sales. 25 Added fin: ce charges of 1% to Red credit card balance. Instructions Journalize the transactions for Red Co. &&&&&&&&&&&&&&&&&&&