Ross Inc.. had the following accounts on its books on December 1, 2015:

Accounts Receivable $120,000 (debit)

Allowance for Uncollectible Accounts 4,000 (credit)

Credit sales were $600,000 and collections on account were $580,000 during 2016.

Required:

a. Prepare general journal entries for the following transactions that occurred during the year:

1) Wrote off A. Smiths account, $3,400.

2) Wrote off P. Jones account, $1,200.

3) P. Jones, who is in bankruptcy, paid $400 in final settlement of the account written off in transaction (2). This amount is not included in the $580,000 collections.

4) On December 31, estimated the years bad debts expense at 1% of credit sales.

b. Show how Accounts Receivable and the Allowance for Uncollectible Accounts would appear on the year-end balance sheet.