RECEIVABLES $-$ LEVEL

Journalize the following transactions $($note that this is not a comprehensive list of all transactions for the month of February$).$ Their accounting cycle is a calendar year, but adjustments are made monthly, including accrued interest on notes receivable. The cost of merchandise sold is $40\%$ of the selling price.

January $31$ st $-$ At the end of the $1$ month period, the Allowance for Doubtful Accounts has a

$1$ debit balance of $$100,$ due to write$-$offs within the month. Make the necessary adjusting entry using the $\frac{A}{R}$ Aging schedule provided below.

$2$ January $31$st $-$ At the end of the $1$ month period, make the adjusting entries for the accrued interest on the outstanding notes listed below.

$3$ Feb $1$st $-$ You have NOT received the note owed by S$.$ O'Donnell on January $31$st$.$ You DO expect to receive it at a later date.

$4$ Feb $1$st $-$ Made a $$100$ sale to P$.$ Panetta who negotiated a note at $5\%$ owed at the end of this month

Feb $5$th $-$ Received notice that J$.$ Hynek has gone out of business and his $\frac{A}{R}$ is uncollectible.

$6$ Feb $9$th $-$ Sale on account to T$.$ Barrett for $$400,$ terms $\frac{2}{10},$ net $30.$

$7$ Feb $10$th $-$ N$.$ Moretti negotiated a note for her outstanding A$/$R with $5\%$ interest due in $6$ months.

$8$ Feb $13$th $-$ Sale on Bank$-$issued credit card for $$200.$ The credit card charges a $3\%$ processing fee.

$9$ Feb $20$th $-$ Received $$100$ from J$.$ Hynek to pay off his account previously written off.

$10$ Feb $28$th $-$ P$.$ Panetta paid her note with interest.

$11$ Feb $28$th $-$ A$.$Darroch paid her note with interest.

Feb $28$th $-$ The company decides to change their method of estimating bad debts and will be disclosing this change in their financial statements. At the end of the $1$ month period, make

$12$ the necessary adjusting entry to update the allowance for doubtful accounts using the percentage of Sales method $($not an aging schedule, and not the balance sheet method$),$ assuming net credit sales totalled $$3,000$ and you expect $10\%$ to be uncollectible.

Accounts Receivable $-$ Aging Schedule

$\backslash$table$[[$Customer$,$Total,$0-30$ days,$31-60$ days,$61-90$ days,$91+$ days$],[$T$.$ Barrett,$$500,$$$500,,,],[$J$.$ Medeiros,$$1,200,$$$200,$$$1,000,,],[$J$.$ Hynek,$$100,,,,$$$100$