The Allowance Method Exercise: Part A: Airy, Inc. began business fan 1, 2011. Journalive the effects of the following transactions 1. During 2011 , sales on account are $120,000 2. During 2011,$100,000 of its recivables ate eollected. 3. At Dec, 31,2011 (end) management estimates $2,000 of is receivables will be uncallectibie. Part B: Continuing from Part A, show the effect on the accounting equation of the 2012 events for Airy, Inc: 8. During 2012, sales on account are $140,000. 9. During 2012,$1,900 of specific receivables from sales made in 2011 are written off as uncollectible. 10. During 2012,$125,000 of its receivables are collected. 11. At December 31,2012, management estimates $3,000 of its receivables will be uncollectible. Prated \& Prepared by Jonathan Pernick