Swiss Supplies showed the following selected adjusted balances at its December 31, 2019, year-end: Dec. 31/19 Balance Accounts Receivable 420,000 Allowance for Doubtful Accounts 19,200 Dec. 31/19 Balance During 2020, the following selected transactions occurred: a. Sales totalled $2,810,000, of which 25% were cash sales (cost of sales $1,813,000). b. Sales returns were $115,000, half regarding credit sales. The returned merchandise was scrapped. c. An account for $31,000 was recovered. d. Several accounts were written off: $33,000. e. Collections from credit customers totalled $1,770,000 (excluding the recovery in (c) above). Part A Required: 1. Journalize transactions (a) through (e). You may find it useful to post your entries to T-accounts for Accounts Receivable and Allowance for Doubtful Accounts. View transaction list Journal entry worksheet 1 2 Record the sales. 34567 Note: Enter debits before credits. Transaction a(1) General Journal Debit Credit Record entry Clear entry View general journal > Part B Required: 2. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 1% of net credit sales. View transaction list Journal entry worksheet 1 Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal 3. Show how accounts receivable will appear on the December 31, 2020, balance sheet. Assets Current assets: Partial Balance Sheet 4. What will bad debt expense be on the income statement for the year ended December 31, 2020? Bad debt expense Required: 5. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 3% of outstanding receivables. View transaction list Journal entry worksheet 1 Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal 6. Show how accounts receivable will appear on the December 31, 2020, balance sheet. Partial Balance Sheet Assets Current assets: 7. What will bad debt expense be on the income statement for the year ended December 31, 2020? Bad debt expense Seerden Servicing monitors its accounts receivable carefully. A review determined that a customer, John Daley, was unable to pay his $90,000 past-due account. Seerden accepted a 90-day promissory note dated April 15, 2020, bearing interest of 5% in exchange for Daley's account. Another customer, ABC Drilling, signed a 4.75%, six-month note dated May 1 in place of its $40,000 past-due accounts receivable. On May 31, Seerden's year-end, accrued interest was recorded on the notes receivable. John Daley honoured his note on the maturity date. ABC Drilling dishonoured its note on the maturity date. On November 15, Seerden Servicing wrote off ABC Drilling's account as it was determined to be uncollectible. Required: Prepare Seerden Servicing's entries for each of the following dates: (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.) a. April 15, 2020 b. May 1, 2020 c. May 31, 2020 d. Maturity date of John Daley's note e. Maturity date of ABC Drilling's note f. November 15, 2020 View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record acceptance of a 5%, 90-day note. Note: Enter debits before credits. Transaction General Journal a Notes receivable-John Daley Accounts receivable-John Daley Debit Credit 90,000.00 90,000.00 Record entry Clear entry View general journal