1) The December 1, 2020 trial balance of ABC Company included the following information:

Debit Credit

Accounts Receivable $180,000

Allowance for Doubtful Accounts 1,600

Sales ( includes cash sales of $1,000,000 ) $1,400,000

Sales Discounts 12,000

Sales Returns and Allowances 4,500

ABC Company has a December 31 fiscal year end.

Instructions:

Prepare the necessary journal entry ( or entries ) for each of the following events that occurred during the month of December, 2020:

1. Dec. 2 A customers accounts receivable of $280 ( originally written off as uncollectible in March, 2020 ) was recovered and collected.

2. Dec. 15 A major customer went bankrupt. The customers accounts receivable of $26,000 was written off.

3. Dec. 31 An aging of accounts receivable at year end indicated that $6,500 of current accounts receivable are not expected to be collected.