1. For a business that uses the allowance method of accounting for uncollectible receivables: (

a) Journalize the entries to record the following:

(1) Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the contra asset account before adjustment has a debit balance of $600. Analysis of the receivables indicates uncollectible receivables of $18,000.

(2) In March of the next year, the $350 owed by Frank Co. on account is written off as uncollectible. (

3) In November of the next year, $200 of the Frank Co. account is reinstated and payment of that amount is received.