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Over the next few months, the fan communities continue to grow in popularity, with more and more companies purchasing advertising space. By the end of 2011, Front Row reports the following balances:

1. Prepare journal entries for the May and June transations. If an amount box does not require an entry, leave it blank.
1.
2. Prepare the adjusting entry required at December 31, 2011, with regard to bad debt under each of the following independent assumptions.a. Assume that Front Row performed an aging of its accounts receivable. Front Row estimates that $895 of its accounts receivable will be uncollectible.
2.

a.
b. Assume that Front Row uses the percentage of credit sales method and estimates that 2% of credit sales will be uncollectible.
b.

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