Show steps 1 and 2 with steps

6-56 Subsidiary Ledger A custom furniture company made credit sales of $840,000 in 20X1 to 100 customers: Ferrara, $5,000; Cerruti, $7,000; others, $828,000. Total collections during 20X1 were $760,000 includ- ing $5,000 from Cerruti, but nothing was collected from Ferrara. At the end of 20X1, an allow- ance for uncollectible accounts was provided of 2.5% of credit sales. 20X1 is the company's first year of operations. 1. Set up general ledger accounts for Accounts Receivable, Allowance for Uncollectible Accounts, and Bad Debt Expense plus a subsidiary ledger for Accounts Receivable. The subsidiary ledger should consist of two individual accounts plus a third account called Others. Post the entries for 20X1. Prepare a statement of the ending balances of the individual accounts receivable to show that they reconcile with the general ledger account. 2. On March 24, 20X2, the Ferrara account was written off. Give the journal entry