D E F 6 7 9 10 11 Task 4: Francesca and Sophia decide to extend credit to their customers in order to increase HHEC.com's sales. However, they are unsure how to account for credit sales and what method they HHEC should use to account for customers who do not pay for their credit purchases. They provide you with a series of transactions involving the sale of merchandise on credit and ask you to record these HAPPY HOME transactions in the general journal. They then provide you with the projected balance of Accounts Erronmental Care Receivable at the end of Year 3 and ask you to determine the amount of bad debt expense using the 1 indirect method. 2 3 Prepare journal entries for the following independent situations. 4 a) The allowance for uncollectible accounts has a $525 debit balance 5 prior to adjustment. An aging schedule prepared on December 31 reveals uncollectible accounts of $7,600. 8 b) The allowance for uncolectible accounts has a $500 credit balance prior to adjustment. An aging schedule prepared on December 31 reveals uncollectible accounts of $7,800, 12 c) The allowance for uncollectible accounts has a $700 credt balance 13 prior to adjustment. Net credit sales during the year are $260,000 14 and 4% are estimated to be uncollectible 15 16 d) The allowance for uncollectiblo accounts has an $800 credit balance 17 prior to adjustment. Net credit sales during the year are $270,000 18 and 3.5% are estimated to be uncollectible. 19 20 ANSWER 21 22 23 24 25 26 27 28 29 30 31 32 33