Required:

1. b) Give all entries related to accounts receivable and the allowance account for the following two cases: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Case ABad debt expense is based on the ending balance of accounts receivable

Case BBad debt expense is based on aging

c) Show how the results of applying each case above should be reported in 20X5 earnings and on the 20X5 statement of financial position.

d) On 1 August 20X6, customer Slo paid his long-overdue account in full. Give the required entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Estimates for bad debt losses: a. Based on ending balance of accounts receivable, 8%. b. Based on aging schedule (excludes Slo's account)