Treat the following as three parts as separate cases:Part 1 of 3 Lynbrook, Inc....

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Accounting

Treat the following as three parts as separate cases:
Part 1 of 3 Lynbrook, Inc. applies the allowance method to recordtransactions relating to their accounts receivables. On December31, 2018, the company had a debit balance of $475,000 in AccountsReceivable and a credit balance of $25,000 in their Allowance forDoubtful Accounts. During 2019, the company completed a number oftransactions involving sales on credit, accounts receivablecollections, and bad debts. These transactions are summarized asfollows:

a. Provided $1,300,000 of delivery services on credit, termsn/30.
b. Wrote off $18,000 of uncollectible accounts receivable. c.Received $700,000 cash in payment of accounts receivable.
d. In adjusting the accounts on December 31, the companyestimated that 2.5% of accounts receivable would beuncollectible.

Required: Prepare journal entries to record Lynbrook’s summarizedtransactions above and its year-end adjustments to record bad debtsexpense. (The company applies the allowance method for its accountsreceivable. Round amounts to the nearest dollar.)

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Journal entries:
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Accounts receivable Dr.		1300000
	Delivery service revenue			1300000

b.	Allowance for doubtful accounts Dr.		18000
	Accounts receivable			18000

c.	Cash account Dr.		700000
	Accounts receivable			700000

d.	Bad debts expenses Dr.		19425
	Allowance for doubtful accounts			19425
Note:
Bad debts expenses
Accounts recievable in beginning		475000
Add: Credit revenue		1300000
Less: Collections		-700000
Less: Amount written off		-18,000
Accounts receivable at the end		1,057,000
Estimated uncollectibles		2.50%
Required balance of Allowance		26425

Actual balance of allowance:
Beginning balance		25000
Less: Amount written off		18000
Actual balance of allowance:		7000
Bad debts expense (26425-7000)		19425

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In: AccountingTreat the following as three parts as separate cases:Part 1 of 3 Lynbrook, Inc. applies...Treat the following as three parts as separate cases:Part 1 of 3 Lynbrook, Inc. applies the allowance method to recordtransactions relating to their accounts receivables. On December31, 2018, the company had a debit balance of $475,000 in AccountsReceivable and a credit balance of $25,000 in their Allowance forDoubtful Accounts. During 2019, the company completed a number oftransactions involving sales on credit, accounts receivablecollections, and bad debts. These transactions are summarized asfollows:a. Provided $1,300,000 of delivery services on credit, termsn/30.b. Wrote off $18,000 of uncollectible accounts receivable. c.Received $700,000 cash in payment of accounts receivable.d. In adjusting the accounts on December 31, the companyestimated that 2.5% of accounts receivable would beuncollectible.Required: Prepare journal entries to record Lynbrook’s summarizedtransactions above and its year-end adjustments to record bad debtsexpense. (The company applies the allowance method for its accountsreceivable. Round amounts to the nearest dollar.)