For a business that uses the allownace method of accounting for uncollectible receivable, journalize the entires to record the following:
1) Record the adjusting entry at Decemeber 31,2010, end of the fiscal year, to record the bad debt expense. The accounts receivable has a balance of $550,000, and the allowance for the doubtful acocunts before adjustment has a credit balance of $5,500. Analysis of the receivables indicates uncollectible reeivables of $25,000.
2) In March, 2011, $2,400 owed by Fenton Co. on account is written off as uncollectible.
3) In November, 2011, $1,800 of the Fenton Co. account is reinstated and payment of that amount is received.