Question Three, Value $20\%$The income statement approach to estimating uncollectible accounts expense $($bad debt expense$)$ is used by Electrical Wholesale. On March $31,$ the firm had accounts receivable in the amount of $$1,230,000.$ The Allowance for Doubtful Accounts had a credit balance of $$3,950.$ The controller estimated that uncollectible accounts expense would amount to one$-$half of $1\%$ of the $$5,200,000$ of net credit sales made during March. This estimate was entered in the accounts by an adjusting entry on March $31($entry $1).$On May $5,$ an account receivable from Brend Smith of $$8,710$ was determined to be worthless and was written off $($entry $2).$ However on June $15,$ Smith won several thousands of dollars in a lottery and immediately paid the $$8,710$ past due account $($entry $3$ & $4).$Instructions:Prepare four $(4)$ general journal entries to record the above events.Group $1$Not yet due $($current$)$$$400,000$Group $21-30$ days past due$85,000$Group $331-60$ days past due$50,500$Group $461-90$ days past due$83,50029,000$Group $5$Over $90$ days past dueTotal$$648,000$Question Four, Value $30\%$Images, a firm specializing in marketing and publicity services, uses the balance sheet approach to estimate uncollectible accounts expense $($bad debt expense$).$ At year$-$end an aging of the accounts receivable produced the following classification:On the basis of past experience, the company estimated the percentages for probably uncollectibility for the five age groups to be as follows: Group $1,1\%$; Group $2,3\%$; Group $3,10\%$; Group $4,20\%$ and Group $5,50\%.$The Allowance for Doubtful Accounts before adjustment at December $31($year$-$end date$)$ showed a credit balance of $$3,100.$Instructions:A$)$ Compute the estimated amount of uncollectible accounts based on the above classification by age groups.Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the properB$)$amount$.$C$)$Assume that on January $10$ of the following year, Images learned that an account receivable that had originated on September $1$ in the amount of $$8,550$ was worthless because of the bankruptcy of the customer, Cranston Manufacturing. Prepare the journal entry required on January $10$ to write off this account.