Problem 9–10A Eastern Supply uses the allowance method in accounting for uncollectible accounts with the estimate based on the aging-of-accounts-receivable method. The company had the following account balances on August 31, 2010:

Accounts Receivable ..................................................................................... $1,374,000 Allowance for Doubtful Accounts (credit balance).................................. 145,200 The following transactions took place during September 2010:
Sept. 2 Elbow Inc., which owes $96,000, is unable to pay on time and has given a 25-day, 8 percent note in settlement of the account.
6 Determined the account receivable from Irma Good ($25,200) was uncollectible and wrote it off.
9 Received notice that a customer (Tony Goad) has filed for bankruptcy.
Goad owes $38,400. The courts will confirm the amount recoverable at a later date.
11 Determined the account receivable from Kay Walsh ($18,240) was uncollectible and wrote it off.
15 Irma Good, whose account was written off on September 6, has paid $18,000 on the account and promises to pay the balance in 30 days.
18 Received a cheque from the courts in the amount of $30,000 as final settlement of Goad’s account.
27 Elbow Inc. paid the note received on September 2.
27 Determined the account receivable for Dave Campbell ($10,080) was uncollectible and wrote it off.
30 Sales for the month totalled $1,440,000 (of which 85 percent were on credit) and collections on account totalled $1,202,400.
30 Eastern Supply did an aging of accounts receivable that indicated that $150,000 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 September 30 if the company used the percent-
of-sales method with an estimate of uncollectibles equal to 8 percent of credit sales?
3. Which of the two methods of estimating uncollectible accounts would normally be more accurate? Why?