The following transactions of Viking Company, assuming they use the allowance method to account for uncollectible accounts.

April 1:Sold $ 2,500 of merchandise to Arthur Co. , Receiving an 8% , 90-day , $2,500 Notes .

April 15 :Wrote off $1,500 owed by Network Co.

April 30 :Received a $6,000 , 5% ,30-day note receivable from Calvin Co. as exchange for its $6,000 account receivable .

May 30 :The note received from Calvin on April 30 was collected in full .

June 30 :Arthur Co. was unable to pay the note on the due date .

July 15:Network Co. paid $1,000 of the amount written off on April 15 .

July 20 :Viking Company estimates that 0.5% of its $ 1,900,000 of credit sales would be uncollectible .

Required : Prepare the journal entries .

After you solve the question your answer must include the following items :

A-Explain in details the journal entries ( why its recorded in debit or credit side ) and the nature of account Dr or Cr and its classification Assets , liabilities , owner's equity , Revenue or expenses .

B-The definition of : Accounts receivable - Notes receivable - Bad debt expenses - Allowances - Allowance for Doubtful accounts .

C-Explain the methods of accounting treatment for uncollectible accounts .

D-Why the direct write off method is not accepted by GAAP.

E-Explain the methods of estimating allowance for uncollectible accounts .

F-Illustrate the components of Notes Receivable .

What are the methods of disposing accounts receivable .