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P1. James reported $600,000 of credit sales in 2018. Based on its prior experience, it...

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Accounting

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P1. James reported $600,000 of credit sales in 2018. Based on its prior experience, it was estimated that 1.5% of James' credit sales will not be collectible. The followings are transactions related to accounts receivable. On 12/31/2018, James estimated bad debt expense for 2018. On 1/4/2019, James wrote off $500 of Accounts Receivable from a customer who was in financialdifficulty. On, 2/2/2019, James received $400 from the customer whose account was written off before. Instructions: Prepare any necessary journal entries for the above 3 transactions. P2. On 10/1/2019, America Bank received a promissory note from its customer borrowing $250,000. Terms of the note were; principal of the note $250,000, 6% interest and due on 12/31/2019 Instructions: Prepare any necessary journal entries for note transactions of America on 1) 10/1/2019 2) 12/31/2019 assuming that the note maker pay the principal and interests on time

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