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(0) Task #3 - Accounts Receivable - Direct Write-off Method: Save of Food Inc. had the following events occur in 2020 and 2021 in relation to accounts receivable. Notes: Assume that all months are 30 days long. Assume that the allowance for doubtful accounts was at balance of $0 on Dec 1, 2020. On Dec 1, 2020 SOF made the following sales on account: Customer Sale Date Amount ($) Browns Social House Dec 1, 2020 200 Extreme Pita Dec 1, 2020 100 Regina Pho Dec 1, 2020 60 o THESE SALES HAVE ALREADY HAD THERE INITIAL ACCOUNTING RECORDED. SOF already had made previous sales on account that were still outstanding as of Dec 1, 2020. Customer Sale Date Amount ($) Joey Nov 1, 2020 400 Milu Nov 1, 2020 100 Regina Pho Oct 1, 2020 40 o THESE SALES HAVE ALREADY HAD THERE INITIAL ACCOUNTING RECORDED. Business Administration 285 Events: Dec 28, 2020 - SOF feels that there is a chance that the $400 of A/R from Joey could not be collected. This is due to the customer not being happy with the product(s) they purchased; however, they are not able to return food after 10 days. Dec 30, 2020 - SOF updates its allowance for doubtful accounts (if needed). Jan 10, 2021 - SOF is notified that Joey will not be paying their $400 of A/R. Based upon this notification SOF decided to officially write off the $400 of A/R. Jan 30, 2021 - SOF updates its allowance for doubtful accounts. Feb 15, 2021 - SOF receives the following cheques: Customer Sale Date Cheque Amount ($) Browns Social House Dec 1, 2020 180 Extreme Pita Dec 1, 2020 100 Regina Pho Dec 1, 2020 60 Joey Nov 1, 2020 150 Milu Nov 1, 2020 - Regina Pho Oct 1, 2020 40 No other indications of not paying have been received from customers. Feb 30, 2021 - SOF updates its allowance for doubtful accounts (if needed). Required: a) Journal Entries: Journal Entries - Prepare the required journal entries for the above dates using the Direct Write-Off method. b) Financial Statements: What will the NBV of the Accounts Receivable be on the Dec 31, 2020 statement of financial position? c) Financial Statements: What will the NBV of the Accounts Receivable be on the Dec 31, 2021 statement of financial position?

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