Allowance method: reconstructing journal entry from events.}

a. (From a problem by S. A. Zeff.) During Year 6, Pandora Company wrote off \(\$ 2,200\) of accounts receivable as uncollectible. Pandora Company collected no cash during Year 6 of amounts it had written off in previous years. The balance in the Allowance for Uncollectibles Accounts account began Year 6 at \$3,500, and the balance at the end of the year, on the balance sheet after all adjusting and closing entries, was \(\$ 5,000\). Present the journal entry that the company made to provide for estimated uncollectibles during Year 6.

b. The balance sheets of Milton Corporation on December 31, Year 1 and Year 2, showed gross accounts receivable of \(\$ 15,200,000\) and \(\$ 17,600,000\), respectively. The balances in the Allowance for Uncollectible Accounts account at the beginning and end of Year 2, after closing entries, were credits of \(\$ 1,400,000\) and \(\$ 1,550,000\), respectively. The income statement for Year 2 shows that the expense for estimated uncollectible accounts was \(\$ 750,000\), which was 1 percent of sales. The firm makes all sales on account. There were no recoveries during Year 2 of accounts written off in previous years. Give all the journal entries made during Year 2 that have an effect on Accounts Receivable and Allowance for Uncollectible Accounts.