Perfect Painting commenced business on March 01, 2018. The business produced monthly financial statements and had total sales of $600,000, of which $450,000 was on account, during the first 4 months.

As of June 30, 2018, no accounts have been written off to date. The accounts receivable had a $233,000 balance, which was comprised of the following accounts, aged according to the date of the sale:

	Month of Sale
Customer	March	April	May	June
Mega Contracts	$ 4,000	$ 2,000	$ 3,000	$ 2,000
Quadra Prints	2,000	3,000	4,000	1,000
Work Wear	6,000	17,000	10,000	3,000
Natural Paint	4,000	8,000	7,000	30,000
Other Accounts Receivable	22,000	15,000	50,000	40,000
	$ 38,000	$ 45,000	$ 74,000	$ 76,000

The following accounts receivable transactions occurred in July 2018:

July 07: Determined the Quadra Prints account was uncollectible and wrote it off.

July 13: Collected $9,000 from Mega Contracts for sales made in the first 3 months.

July 17: Determined the Work Wear account was uncollectible and wrote it off.

July 22: Collected $4,000 from Natural Paint for sales made in the month of March.

July 28: Received a cheque from Work Wear for $12,000 plus three cheques of $8,000 each, post-dated for August 28, September 28, and October 28.

July 31: Total sales in the month of July were $400,000; 80% of these sales were on account, and 70% of the sales on account were collected in the month.

Required:

Perfect Painting read on the internet that similar companies used the allowance method of accounting for uncollectibles, with many of these companies estimating the uncollectibles through an aging of accounts receivable.

Journalize the adjustments that would have to be made on June 30 for the months of March through June, assuming the following estimates of uncollectibles:

Age of Accounts Receivable Percent Estimated Uncollectible

From current month 1%

From prior month 3%

From 2 months prior 4%

From 3 months prior 10%

From 4 months prior 30%

Help me journal entries for the July 2018 transactions.

Help me with a journal entry for the month-end adjustment, using the information from the table above.

Use the allowance method, which was used above, to record the following:

The balance sheet presentation of the accounts receivable for June and July 2018

The effect of the uncollectibles on the income statement for June and July 2018