The Brockrie Employment Agency started business on January 1, 2020. The company produced monthly financial statements and had total sales of $520 000 (of which $416,000 was on account) during the first four months On April 30, Accounts Receivable had a balance of $228,352 (no accounts have been written off to date), which was made up of the following accounts aged according to the date of the sale: (Click the icon to view the aging-of-accounts receivable table.) (Click the icon to view the accounts receivable transactions.) Required Requirement 1. The Brockne Employment Agency has heard that other companies in the industry use the allowance method of accounting for uncollectibles with many of these estimating the uncollectibles through an aging-of-accounts receivable. a. Journalize the adjustments that would have to be made on April 30 (for the months of January through April) (Record debits first, then credits. Exclude explanations from journal entries. Do not round intermediary calculations. Only round the amounts you input in the cell to the nearest dollar.) General Journal Aging schedule - X Date Accounts Debit Credit April 30 Customer Gallant Distributors b. Journalize the transactions of May 2020 Month of Sale January February March April $ 3,800 $ 1 200 S 2 200 $ 2,000 1,700 1,800 4,000 3,100 4,600 14,800 3,700 4.800 2,300 8.300 8.400 32,000 19,684 8,038 52,700 44,200 $ 32,064 $ 34,188 $ 76,000 $ 86,100 Pierre Courier Pravda Solutions National Design May 12 Decided the Pierre Courier account was uncollectible and wrote it off General Journal Other Accounts Receivable Date Accounts Debit Credit May 12 Accounts Recievable Transactions - X May 15. Collected $7,200 from Gallant Distributors for sales made in the first three months. General Journal Date Accounts Debit Credit May 15 The following accounts receivable transactions took place in May 2020: May 12 Decided the Pierre Courier account was uncollectible and wrote 15 Collected $7,200 from Gallant Distributors for sales made in the first three months 21 Decided the Pravda Solutions account was uncollectible and wrote it off 24 Collected $2,300 from National Design for sales in the month of January 26 Received a cheque from Pravda Solutions for $18,900 plus four cheques of $3,500 each, post dated to June 26, July 26 August 26, and September 26. 31 Total sales in the month were $400,000, 90 percent of these were on account, and 70 percent of the sales on account were collected in the month May 21. Decided the Pravda Solutions account was uncollectible and wrote it off. General Journal Accounts Date Debit Credit May 21 May 24 Collected $2 300 from National Design for sales in the month of January General Journal Date Accounts Debit Credit May 24 May 26 Received a cheque from Pravda Solutions for $18,900 plus four cheques of $3.500 each post-dated to June 26 July 26 August 26, and September 26 To record the transactions of May 26, begin with the reversal of the write-off for Pravda Solutions. General Journal Date Accounts Debit Credit May 26 Now, record the receipt of the $18 900 cheque General Journal Date Accounts Debit Credit May 26 May 31. Tolal sales in the month were $400,000, 90 percent of these were on credit and 70 percent of the credit sales were collected in the month. Begin with the total sales for the month. (Round your answer to the nearest dollar.) General Journal Date Accounts Debit May 31 Credit Next, record the credit sales collected in May. (Round your answer to the nearest dollar.) General Journal Date Accounts Debit Credit May 31 C. Journalize the month-end adjustment, using the table that appears in requirement 1a. (Do not round intermediary calculations. Only round the General Journal Date Accounts Debit Credit May 31 Requirement 2. For the method of accounting for the uncollectibles used above, show: a. The balance sheet presentation of the accounts receivable Brockrie Employment Agency Balance Sheet (partial) April 30 May 31 Net accounts receivable b. The overall effect of the uncollectibles on the income statement for the months of April and May 2020 April 30 May 31 Income Statement May (partial): Expenses The Brockrie Employment Agency started business on January 1, 2020. The company produced monthly financial statements and had total sales of $520 000 (of which $416,000 was on account) during the first four months On April 30, Accounts Receivable had a balance of $228,352 (no accounts have been written off to date), which was made up of the following accounts aged according to the date of the sale: (Click the icon to view the aging-of-accounts receivable table.) (Click the icon to view the accounts receivable transactions.) Required Requirement 1. The Brockne Employment Agency has heard that other companies in the industry use the allowance method of accounting for uncollectibles with many of these estimating the uncollectibles through an aging-of-accounts receivable. a. Journalize the adjustments that would have to be made on April 30 (for the months of January through April) (Record debits first, then credits. Exclude explanations from journal entries. Do not round intermediary calculations. Only round the amounts you input in the cell to the nearest dollar.) General Journal Aging schedule - X Date Accounts Debit Credit April 30 Customer Gallant Distributors b. Journalize the transactions of May 2020 Month of Sale January February March April $ 3,800 $ 1 200 S 2 200 $ 2,000 1,700 1,800 4,000 3,100 4,600 14,800 3,700 4.800 2,300 8.300 8.400 32,000 19,684 8,038 52,700 44,200 $ 32,064 $ 34,188 $ 76,000 $ 86,100 Pierre Courier Pravda Solutions National Design May 12 Decided the Pierre Courier account was uncollectible and wrote it off General Journal Other Accounts Receivable Date Accounts Debit Credit May 12 Accounts Recievable Transactions - X May 15. Collected $7,200 from Gallant Distributors for sales made in the first three months. General Journal Date Accounts Debit Credit May 15 The following accounts receivable transactions took place in May 2020: May 12 Decided the Pierre Courier account was uncollectible and wrote 15 Collected $7,200 from Gallant Distributors for sales made in the first three months 21 Decided the Pravda Solutions account was uncollectible and wrote it off 24 Collected $2,300 from National Design for sales in the month of January 26 Received a cheque from Pravda Solutions for $18,900 plus four cheques of $3,500 each, post dated to June 26, July 26 August 26, and September 26. 31 Total sales in the month were $400,000, 90 percent of these were on account, and 70 percent of the sales on account were collected in the month May 21. Decided the Pravda Solutions account was uncollectible and wrote it off. General Journal Accounts Date Debit Credit May 21 May 24 Collected $2 300 from National Design for sales in the month of January General Journal Date Accounts Debit Credit May 24 May 26 Received a cheque from Pravda Solutions for $18,900 plus four cheques of $3.500 each post-dated to June 26 July 26 August 26, and September 26 To record the transactions of May 26, begin with the reversal of the write-off for Pravda Solutions. General Journal Date Accounts Debit Credit May 26 Now, record the receipt of the $18 900 cheque General Journal Date Accounts Debit Credit May 26 May 31. Tolal sales in the month were $400,000, 90 percent of these were on credit and 70 percent of the credit sales were collected in the month. Begin with the total sales for the month. (Round your answer to the nearest dollar.) General Journal Date Accounts Debit May 31 Credit Next, record the credit sales collected in May. (Round your answer to the nearest dollar.) General Journal Date Accounts Debit Credit May 31 C. Journalize the month-end adjustment, using the table that appears in requirement 1a. (Do not round intermediary calculations. Only round the General Journal Date Accounts Debit Credit May 31 Requirement 2. For the method of accounting for the uncollectibles used above, show: a. The balance sheet presentation of the accounts receivable Brockrie Employment Agency Balance Sheet (partial) April 30 May 31 Net accounts receivable b. The overall effect of the uncollectibles on the income statement for the months of April and May 2020 April 30 May 31 Income Statement May (partial): Expenses