Exercise 1: Presented here are selected transactions related to B. Dylan Corp., which uses perpetual inventory method. Mar. 1 Sold $20,000 of merchandise to Potter Company, terms 2/10, n/30. The cost of the merchandise is $17,000 11 Received payment in full from Potter Company for balance due. 13 Made credit sales for $13,200, terms 2/10,n/30. The cost of the merchandise is $10,000 April 13 Received collections of $8,200 on credit sales, assuming the collection is not eligible for any discount May 10 Wrote off as uncollectible $16,000 of accounts receivable (B.Dylan Corp. uses the percentage of receivables basis to estimate bad debts.) June 30 The balance in accounts receivable at the end of the first 6 months is $200,000 and the bad debts percentage is 10%. At June 30 the credit balance in the allowance account prior to adjustment is $3,500. Recorded bad debt expense, April. 13 Received collections of $8,200 on credit sales, assuming the collection is not eligible for any discount May 10 Wrote off as uncollectible $16,000 of accounts receivable. (B. Dylan Corp, uses the percentage of receivables basis to estimate bad debts.) The balance in accounts receivable at the end of the first 6 months is $200,000 and June 30 the bad debts percentage is 10%. At June 30 the credit balance in the allowance account prior to adjustment is $3,500. Recorded bad debt expense. July 16 One of the accounts receivable written off in May pays the amount due, $4,000, in full Instructions Prepare the journal entries for the transactions