Question 1 Fleming Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 1% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2019, and December 31, 2020, appear below: 12/31/19 12/31/20 Net Credit Sales ---------------------- $400,000 $500,000 Accounts Receivable ---------------- 60,000 80,000 Allowance for Doubtful Accounts-- 5,200 Cr ? The following transactions took place in year 2020 Aug. 10 Wrote off the account of Sue King for $800 as uncollectible. Sept. 12 Sold merchandise to Tom Young for $5,000 with terms of net 45 days. Received cash of $1,000 with the balance of a 6%, 45 days note from Young. Oct. 10 Received a check for $500 as payment on account from Sue King, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid on November 15. Oct. 27 Received full payment on the note from Tom Young Nov. 15 Sue King had a stroke and was not able to pay her outstanding balance as promised. Management decided to write-off King's account permanently. (Use 360 days in the calculation of interest) Required: (a) Prepare journal entry to record the above transactions. (Explanation is not required) (14 marks) (b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2020. (Explanation is not required) (2 marks) (c) What is the balance of Allowance for Doubtful Accounts at December 31, 2020? (2 marks)