Journalizing and posting adjustments for Bad Dobto Expense and write offs and recovery based or balance Lehect approach Preparation of partial balance sheet in 20x7. 134-4. Simon Company completed the following transactions: 20x8 Jan. 9 Sold merchandise on account to Ray's Supply, $1,500. Jan. 15 Wrote off the account of Pete Runnels as uncollectible because of his death, $600. Mar. 17 Received $400 from Roland Co., whose account had been written off in 20X7. The account was reinstated and the collection recorded. Apr. 9 Received 10% of the $4,000 owed by Lane Drug. The remainder was written off as uncollectible. June 15 The account of Mel's Garage was reinstated for $1,200. The account was written off three years ago and collected in full today. Oct. 18 Prepared a compound entry to write the following accounts off as uncol- lectible: Jane's Diner, $200; Keen Auto, $400; Ralph's Hardware, $600. Nov. 12. Sold merchandise on account to J. B. Rug, $1,900. Dec. 31. Based on an aging of Accounts Receivable, it was estimated that $7,000 will be uncollectible out of a total of $160,000 in Accounts Receivable. Dec. 31 Closed Bad Debts Expense to Income Summary From the preceding as well as the following additional data: Acct. No. Balance Allowance for Doubtful Accounts $4,100 Income Summary 312 Bad Debts Expense 612 114 Check Figures Total current asseto 2360 a. Journalize the transactions.. b. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed. (Be sure to record the beginning balance in the Allowance account in your Study Guide and Working Papers.) c. Prepare a current assets section of the balance sheet. Ending balances needed: Cash, $13,000; Accounts Receivable, $160,000; Office Supplies, $2,110; Merchandise Inventory, $103,000; Prepaid Rent, $1,250