Record journal/ adjusting entries to record all omitted transactions.

b. During the year-end audit, Hi-Lo was suggested to change way bad debts were estimated. Hi-Lo currently uses the percentage of accounts receivable method (10% of 661,100), but will have to revise its estimated bad debt expense using the aging of accounts receivable method. The information pertaining to the accounts receivable is given below: DV Farmer JJ Joysen NJ Bell JC Net Noell Store Johnston Supplies Total Amount ($) 126,500 89,200 53,600 232,800 63,000 96,000 661,100 Due date January 17, 2021 July 30, 2020 June 12, 2020 October 19, 2020 December 14, 2020 September 28, 2020 2 % Bad Debt Age Category (Number of Days Unpaid) 1-30 31-90 91-120 Over 120 5 20 35 50