The Tremblays Supplies uses the aging-of-accounts receivable method to account for uncollectible accounts.

The company had the following account balances on November 30, 2019

Accounts receivable : $ 1 947 000

Allowance for doubtful accounts 56 000

During December 2019, the following transactions took place :

Dec. 2 : Customer Simo who owes $40 000 is unable to pay on time and has given a 20-days, 8% note in settlement of the account.

Dec. 6 : Received from F. Corbeil the amount owed on November 6 dishonoured note, plus interest for 30 days at 4%, calculated on the maturity value of the note ($15 300)

This dishonoured note has been transferred on November 6 to Accounts receivable

Dec 10: Received notice that a customer, Fanzi Supplies, has filled for bankruptcy.

He owes $35 000 . Only $ 25 000 are expected to be collected

Dec. 11 : Determined the Account Receivable for Jean Valjean , with a balance of $ 7 200, was uncollectible and wrote it off.

Dec. 18 : Received a cheque of $25 000 from courts as final settlement of Fanzis account.

Dec. 22 : Simo paid the note of December 2 .

Dec. 31 : Sales of the month totalled $ 743 000 of which 95 % where on credit and collection on accounts totaled

$ 520 000

Dec. 31 : Tremblay supplies did an aging of accounts receivable that indicated that $ 60 000 is expected to be uncollectible . The company recorded the appropriate adjustment

REQUIRED :

1. Record the above transactions in the general journal.

2. What would be the adjusting entry required on December 31 if the company used the percent-of-credit sales method with an estimated of uncollectible equal to 4% of the sales on account

3. Which of the 2 methods of estimating uncollectible is normally more accurate ? Why ?