Matching-Chapter 7 Terms Phrase Bad debt expense "plugged by Estimating allowance for uncollectible accounts. Grouping accounts receivable Depending on the length of time Outstanding. Reduces the amount paid by a Credit customer if paid within a specified time. When merchandise is returned For credit. An example of a restriction on Cash. Buyer assumes the risk of Uncollectibility Bad debt expense is recorded When receivables are written off. Bad debt expense is a % of credi Sales. Using receivables as collateral For a loan. Reduces the carrying value of Accounts receivable without Term 1. Direct write-off method 2. Cash discount 3. Accounts receivable aging 4. Allowance method 5. Sales returns 6. Balance sheet approach 7. Income statement approach 8. Compensating balance 9. Pledging 10. Without recourse knowing which specific customer accounts are bad debts. mary of London Fashion's December 31, 2018, accounts receivable aging ule is presented below along with the estimated percent uncollectible for 9. A sum sched each age group: Age Group 0-60 days 61-90 days 91-120 days Over 120 days Amount $40,000 15,000 2,000 800 .5 1.5 15.0 80.0 The allowance for uncollectible accounts had a balance of $1,600 at January 1, 2018. During the year bad debts of $1,150 were written off Required: Prepare all the 2018 journal entries with respect to bad debts and the allowance For uncollectible accounts. 10.On October 1, 2018, Watergate Hotels borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivables as collateral. Additionally, Watergate was charged a finance fee equal to 1% of the accounts receivable assigned. At the end of December, $300,000 of the assigned receivables were collected and remitted to the lender along with accrued interest Required Prepare journal entries to record the borrowing, the assignment of receivables, the collection on the receivables, and the recognition of interest expense