Reconstructing events when using the allowance method. Selected data from the accounts of Seward Company after adjusting entries but before closing entries appear below.

The firm makes all sales on account. There were no recoveries during the year of accounts written off in previous years.
Set up T-accounts for each of the four accounts above and enter the balances on January 1 and December 31. Enter in the T-accounts the entries that Seward Corporation made during the year for the following:

a. Sales on account

b. Provision for estimated uncollectible accounts

c. Write-off of actual uncollectible accounts

d. Collection of cash from customers from sales on account

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January 1 Accounts Receivable ... $82,900 Dr. Allowance for Uncollectible Accounts 8,700 Cr. Bad Debt Expense Sales... - December 31 $ 87,300 Dr. 9,100 Cr. 4,800 Dr. 240,000 Cr.