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April 1,800 2,800 1,900 Customer Gallic Distributors Parker Courier Piety Solutions Nate Design Month of Sale January February March $ 4.000 $ 1,200 $ 2,600 $ 1.700 3,500 4,900 14,400 8,000 2,400 8,300 8,600 18,964 8.788 53,300 $ 32,164 $ 34,388 $ 76,000 $ 86,500 4,300 30,000 47,600 Other Accounts Receivable The following accounts receivable transactions took place in May 2020: May 12 Decided the Parker Courier account was uncollectible and wrote it off. 15 Collected $7,800 from Gallic Distributors for sales made in the first three months. 21 Decided the Piety Solutions account was uncollectible and wrote it off. 24 Collected $2,400 from Nate Design for sales in the month of January 26 Received a cheque from Piety Solutions for $17,600 plus four cheques of $3,500 each, post-dated to June 26, July 26, 1. The Airey Employment Agency has heard that other companies in the industry use the allowance method of accounting for uncollectibles, with many of these estimating the uncollectibles through an aging of accounts receivable. a. Journalize the adjustments that would have to be made on April 30 (for the months of January through April), assuming the following estimates of uncollectibles: Percent Estimated Uncollectible 3 % Age of Accounts Receivable From current month From prior month 5 % From two months prior 16 % From three months prior 30 % 45 % From four months prior b. Journalize the transactions of May 2020. c. Journalize the month-end adjustment, using the table that appears in requirement 1a. 2. For the method of accounting for the uncollectibles used above, show: a. The balance sheet presentation of the accounts receivable. b. The overall effect of the uncollectibles on the income statement for the months of April and May 2020

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