Weekoa Weeklo Accounts Receivable Allowance Methods Bank Reconciliation Review Marion Company had sales revenue of $765,000 in 2019. Allowance for Bad Debts has a credit balance of $700. Study of prior year's figures indicates 1.1% of net sales are uncollectible and 5.0% of A/R are uncollectible December 31, 2019 Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days Accounts Receivable 104,000 Estimated % Uncollectible The following information comes from the records of Mayhem Co. for the month of April. Their ending cash balance per their general ledger was $7,340. Deposits Cash Payments Date Amount Date Check # Amount Apr 1 560 Apr 4 1716 580 10 1,440 6 1717 870 17 780 17 1718 1,050 30 2,900 25 1719 110 From the Company's Bank Statement 62,000 0.5% 28,000 5% 10,000 16% 4,000 55% Checks and other debits Date Check # Amount Balance a. 1. Prepare the journal entry to estimate bad debt expense assuming: The company uses the % of sales method b. The company uses the % of A/R method c. The company uses the aging of A/R method 2. Prepare the journal entry to write off $1,200 A/R from Grant Company on March 2, 2020 3. Prepare the journal entries to record collection of $500 from Grant Company on June 5, 2020 4/5 4/12 4/28 1716 1717 580 800 20 SC Deposits Date 4/2 4/11 4/15 4/17 4/28 Amount 560 1,440 1,500 CM 780 10 IN 4/1 4,480 4/2 5,040 4/11 5,690 4/12 4,890 4/15 6,390 4/17 7,170 4/28 7160 CM - Credit Memo SC - Service Charge IN-Interest The Credit Memo is for the collection of a note. Check 1717 for utilities was incorrectly recorded in the check register as $870. It cleared the bank for the correct amount. Prepare the Bank Reconciliation as of April 30 and the necessary journal entries