Important note : This question consist from two parts (feel free to attache excel sheet if you wish) Part 1: Andy Corp. uses a mix of procedures and the allowance method to record the impairment on their Accounts Receivables balance. The following information relates to balances and transactions recorded in the Allowance for Doubtful Accounts (AFDA) during the 2017 fiscal year: Opening balance in account on January 1, 2017 = $406,000 (credit) During 2017, bad debt expense was recorded in the AFDA as 0.78% of net credit sales of $72 million During 2017, uncollectible receivables amounting to $486,000 were written off against the AFDA On December 31, 2017, based on an aging of Accounts Receivable, the AFDA closing balance should be measured at $523,000 (credit) Required: Prepare the entry to adjust Allowance for Doubtful Accounts and bad debts expense at December, 31, 2017. (6 marks) Part 2: On July 1, 2017, Straton Inc. accepted a $52,500, non- interest bearing nine-month note in exchange for the Accounts Receivable balance owing from their customer, Norten Ltd. The implied rate of interest is 4%. Straton Inc. has a December 31 fiscal year end. Required: Prepare the necessary journal entry to record the short-term note receivable transaction. (9 marks)