Simone Company completed the following transactions:

From these transactions as well as the following additional data on January 1, 2021, complete a–c:

a. Journalize the transactions. The company uses the perpetual and allowance methods.
b. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed. (Be sure to record the beginning balance in
the Allowance account in the working papers that are available in MyLab Accounting.)
c. Prepare a current assets section of the balance sheet. Ending balances needed are as follows: Cash, $11,000; Accounts Receivable, $160,000; Office Supplies, $2,120; Merchandise Inventory, $102,000; Prepaid Rent, $950.

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2021 Jan. Jan. Mar. Apr. June Oct. Nov. Dec. Dec. 9 15 17 9 15 18 12 31 31 Sold merchandise on account to Ryan's Supply, $1,600. Cost of merchandise sold, $1,000. Wrote off the account of Pete Runnels as uncollectible because of his death, $700. Received $350 from Romero Co., whose account had been written off in 2020. The account was reinstated and the collection recorded. Received 20% of the $4,600 owed by Lue Drug. The remainder was written off as uncollectible. The account for Ming's Garage was reinstated for $1,600. The account was written off 3 years ago and collected in full today. Prepared a compound entry to write the following accounts off as uncollectible: Jane's Diner, $260; Kailey Auto, $440; Rodney's Hardware, $600. Sold merchandise on account to J. B. Rug, $1,900. Cost of merchandise sold, $1,200. Based on an aging of Accounts Receivable, it was estimated that $6,800 will be uncollectible out of a total of $160,000 in Accounts Receivable. Closed Bad Debts Expense to Income Summary.