Question 3 (18 marks) Zonic Company adjusts and closes its accounts annually. The financial year-end date is on 31 December and uses the Allowance Method to write-off uncollectible accounts. The following information was from the unadjusted trial balance dated 31 December 2019: Debit $ Allowance for impairment Sales revenue (80% is credit sales) Sales returns and allowances (80% is from credit sales) Credit $ 6,000 1,500,000 50.000 After preparing the unadjusted trial balance, the accountant discovered the following transactions were not yet recorded in the books: (i) Recovery of a $3,600 accounts receivable that was already written off and recorded in the books earlier. (ii) Write-off a $20,000 accounts receivable that has proven to be uncollectible. Required: (a) Prepare journal entries to record (i) and (ii) above (6 marks) (b) After adjusting (a) Zonic's accounts receivable by age group as at 31 December 2019 is as follows. Prepare adjusting entries for the year if Zonic used the Statement of Financial Position approach to estimate its uncollectible amounts. (4 marks) Accounts Receivable by Age Group as at 31 Dec 2019 Accounts Receivable Estimated Uncollectable % Current $ 66,000 2% 1-30 days past due 36,000 4% 31-60 days past due 8.5% 61-90 days past due 7,500 39% Over 90 days past due 2,5,00 65% Totals $120,000 8,000 (c) Prepare adjusting entries for the year if Zonic Company used the Income Statement approach and it estimated 2% of net credit sales would be uncollectible in 2019. (4 marks) (d) Prepare a partial Statement of Financial Position to show the estimated collectible amount of accounts receivable, assume Zonic used the Statement of Financial Position approach. (4 marks)