Solon Co. had the following balances at January 1: Accounts Receivable $67000 Positive asset (debit) Allowance for Uncollectible Accounts $8200 Negative asset (credit) Note that at this point, each account has a normal balance. (Assets are normal debit balances, Accounts Receivable is an asset. The allowance for uncollectible accounts is a contra-asset so it has a normal credit balance.) The following transactions occurred during January: 1. Solon sold $560000 of merchandise on credit (on account) 2. Solon collected $380000 from customers on account. 3. Solon wrote-off $5400 of uncollectible accounts. Record the transactions in accounts or the accounting equation. The s will use the equation approach and also show you the solution in t-accounts. Don't forget the beginning balances. Then answer the following questions: 1. What is the balance in Accounts Receivable after these transactions? Put a number (no negative signs) in the first box and the word debit or credit in the second box. (It is a debit if it is a positive asset, a credit if it is a negative asset.) 2. What is the balance in the Allowance for Uncollectible Accounts after these transactions? Put a number (no negative signs) in the first box and the word debit or credit in the second box. (It is a debit if it is a positive asset, a credit if it is a negative asset.) Note that in this problem we haven't done the adjusting journal entry, which would credit the allowance account (increase the allowance, decreasing assets) and debit bad debt expense (increase bad debt expense, decreasing equity)