journalizing and posting adjustments for bad debt expense and write-off and recovery based on balance sheet approach; preparing partial balance

P12-4C. Prospecting Supply Company of Edson completed the following transactions: 2021 Jan. 8 Sold merchandise on account to May Expeditions, $4,160. Feb. 19 Wrote off the account of Avery Fischer as uncollectible because of his death, $624. Mar. 15 Received $600 from Maximum Co.; account had been written off in 2016. The account was reinstated and the collection recorded. Apr. Received 25% of the $6,400 owed by Airborne Surveys. The remainder was written off as uncollectible. July 19 The account of Hallicrafter Explorations was reinstated for $3,000 (amount received). The account was written off three years ago. Oct. 29 Prepared a compound entry to write the following accounts off as uncol- lectible: Corbert Co., $275; Quark Co., $654; Lonely Ixpeditions, $247. Nov. 14 Sold merchandise on account to Partridge Surveys, $4,280. Dec. 31 Based on an aging of accounts receivable, in was estimated that $6,850 would be uncollectible out of a total of $142,000 in Accounts Receivable. 31 Closed Bad Debts Expense to Income Summary ENG US Additional Data as of 01/01/2021: Account No. Balance Dr./Cr. 1124 Allowance for Doubtful Accounts Income Summary Bad Debts Expense $6,150 Cr.- Jan. 1, 202 3100 6125 Journalizing and posting adjustments for bad debts expense and write-offs and recovery based on balance sheet approach; preparing partial balance sheet (60 min) Check Figure Total Current Assets $265,022 Required a. Journalize the transactions. b. Post to Allowance for Doubtful Accounts, Income Summary, or Bad Debts Expense as needed. c. Prepare a current assets section of the balance sheet. Ending balances needed: Cash, $16,742; Accounts Receivable, $142,000; Office Supplies, $2,630; Merchandise Inventory, $107,000; Prepaid Rent, $3,500; and your calculated balance for Allowance for Doubtful Accounts