Chapter 7, Problem 3AP

a.

To determine

Calculate the estimated amount of uncollectible accounts.

b.

To determine

Journalize the uncollectible accounts expense transaction, if the adjustment for credit balance of Allowance for Doubtful Accounts is $7,080.

c.

To determine

Journalize the entry to write off the accounts receivable account from Corporation S.

d.

To determine

Indicate the advantages of the introducing a policy of signing an interest-bearing note for the outstanding accounts that become more than 60 days past due.