Grimm€™s Hardware Company uses the percent of sales method of estimating uncollectible accounts expense for its monthly financial reporting and the aging of receivables method for its year-end reporting. The company had a $9,500 credit balance in Allowance For Doubtful Accounts on November 1, 2015. The following selected transactions were completed during the final two months of the current fiscal year by Grimm€™s Hardware Company:
Nov. 15. Recorded a sale on account of $9,664 to Hart House Inc.; cost of goods sold was $5,800.
23. Wrote off account of Traders Ltd., $675.
27. Received $9,500 as partial payment on the $20,000 account of Olds Distributors Ltd.
30. Based on past history, 2% of sales are expected to be uncollectible.
Grimm€™s Hardware Company recorded sales of $125,800 during November.
Dec. 1. Recorded a sale on account of $22,900 to Chang Construction Ltd; cost of goods sold was $15,550.
5. Received $675 from Traders Ltd., which had been written off on Nov. 23.
Reinstated the account and recorded the cash receipt.
31. Wrote off the following accounts as uncollectible (record as a compound journal entry):
Bill€™s Construction Co. ........... $ 425
Trenton Construction Ltd. ......... 10,600
G. Schroeder .............. 864
31. Prepared the adjusting entry, using the following accounts receivable aging schedule:

Instructions
Journalize the transactions, assuming Grimm€™s Hardware Company uses a perpetual inventory system.

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Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts Age Class 0-30 days 31-60 days 61-90 days Over 90 days S104,800 62,900 20,960 10,484 1% 20 50