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Accounts receivable for Smith Ltd$.$ were reported on the statement of financial position prepared at the end of $20$X$8,$ as follows:

Accounts receivable $ $123,800$

Less: Allowance for doubtful accounts $3,620$ $ $119,460$

In $20$X$9,$ the following transactions took place:

Accounts written off $ $2,240$

Accounts previously written off but recovered $668$

Additional information:

The company sells goods on account. At the end of the year, accounts receivable are aged and the following percentages are applied in arriving at an estimate of the charge for doubtful accounts.

Estimated Loss

Current accounts $0\%$

Accounts $12$ months overdue $7\%$

Accounts $36$ months overdue $20\%$

Accounts $712$ months overdue $50\%$

Accounts more than $1$ year overdue $95\%$

At the end of the year, most of the accounts receivable are current. However, the aging schedule $($after write$-$offs and recoveries$)$ shows the following:

Accounts $12$ months overdue $ $8,400$

Accounts $36$ months overdue $7,000$

Accounts $712$ months overdue $3,400$

Accounts more than $1$ year overdue $1,780$

Required:

$1.$ Give the entries required to record the transactions listed above and also to adjust the accounts. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$Required:

Give the entries required to record the transactions listed above and also to adjust the accounts. $($If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

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