Question:3 (10 Marks) 2/8 Feromony uses the allowance method to account for bad debts. In the first year of operations (2 019, Filer sold $640,000 of merchandise on credit, including a $3,500 sale to Bubba Long. On Decem ber 31, 2019, provided an addition to tealowance for doubtlul accounts equal to 1.8% of its credit sales. On June 1, 2020 Filer wroteoff as uncolectible the $3.500 account of Bubba long and on De etibe 25 2020 Bubba Lang unexpectedly paid his account in full. Prepare the joumel entries that Fi her Company should make (a) On December 31, 2079 to increase the allowance for doubtful accounts b) on June 1, 2020 to write all the bed dett. On December 25, 2020, to record the unexpected collection from Bubba Long Question:4 (30 Marks) Accounts receivablearise from credit sales to customers by both retailers and wholesalers Credit sales are recorded by crediting an account receivable for a specific customer The As long as a comparty accurately records credit sales information, it is not necessary to have account stor specific customers. True False Il a customer owes interest on a bill, Accounts Receivalle is debited, and Interest Expense is credited. True False Techcom customer RDA Electronics paid off an 88,300 balance on its account receivable TechComs hould record the transaction as a debit to Accounts Receivable RDA Electronics and a credit to Cash True If the alowance method is used the journal entry to record thereinstatement of an account previous! y written off in the current period includes a debit to Accounts Receivable and a credit to Bed Debt Ex pense True Falso Techcom has $40,000 in outstanding accounts receivable Past experience suggests that of outst anding receivables are uncollect ble. The current balance in the allowance for doubtful accounts is $2. 500 debit. The required adjusting joumal entry includes a debit to bad debt expense for $4,500. True False