1. The trial balance of Greenbrier Company at December 31, 2012 includes the following: 2. Patton Company sells $200,000 of accounts receivable to PKD, Inc. for cash less a 4% service charge.

1.  Present the journal entries specified below; show supporting calculations.  The trial balance of Greenbrier Company at December 31, 2012 includes the following:

                                                                                             Debits                  Credits

Accounts Receivable ............................................................... 80,000

Allowance for Doubtful Accounts .............................................                            3,000

Sales (all on credit) ..................................................................                     700,000

Sales Returns and Allowances ................................................ 20,000

A. If Greenbrier uses the aging method and estimates that $5,000 of receivables will be uncollectible, prepare the adjusting entry.

B. If Greenbrier estimates uncollectibles at 2% of net credit sales, prepare the appropriate adjusting entry.

C. Assume that on February 10, 2013 the specific account of Norman Tryon with a balance of $300, is deemed uncollectible. Record the write-off.

D. Assume that on May 12, 2013 Tryon pays his entire balance, previously written off in entry (3). Record the appropriate entries.

2.  Sale of Accounts Receivable 

A. Patton Company sells $200,000 of accounts receivable to PKD, Inc. for cash less a 4% service charge. Record the sale.

B. Made MasterCard credit card sales totaling $6,000. A 3% service fee is charged by  MasterCard. Record the sale on the books of Patton Company.