7.6 Cumulative Questions 1) Journalize the following transactions for Allan Company using the allowance method: April 21 Sold $560 of merchandise on account to Bill Smith. June 30 Bill Smith...

7.6 Cumulative Questions

1) Journalize the following transactions for Allan Company using the allowance method:

April 21 Sold $560 of merchandise on account to Bill Smith.

June 30 Bill Smith filed bankruptcy and his account was written off.

August 1Replaced Joe's $4,500 receivable balance with a 4%- 8month note.

Dec 31 Recorded Bad Debts Expense based on 6% of credit sales of $120,000

Dec 31 Recorded interest on the note.