Regents Supply completed the following selected transactions during the year:

Jan 17 Sold inventory to Abe Gomez, $600, on account. Ignore cost of goods sold.

Jun 29 Wrote off the Abe Gomez account as uncollectible after repeated efforts to collect from him.

Aug 6 Received $200 from Abe Gomez, along with a letter stating his intention to pay within 30 days. Reinstated his account in full.

Sep 4 Received the balance due from Abe Gomez.

Dec 31 Made a compound entry to write off the following accounts as uncollectible: Bernard Clark, $700; Marie Montrose, $300; and Terry Forman, $600.

Dec 31 Based on an aging of accounts receivable, estimated uncollectible accounts as $2,300.

Requirements

1. Open T-accounts for Allowance for Doubtful Accounts and Bad Debt Expense. These accounts have beginning balances of $1,800 (Cr.) and 0, respectively.

2. Record the transactions in the journal, and post to the two T-accounts.

3. The December 31 balance of Accounts Receivable is $139,000. Show how Accounts Receivable would be reported on the balance sheet at that date.