(2019) Filler Company uses the allowance method to account for bad debts . In the first year of operations , Filler sold $ 640,000 of merchandise on credit , including a $ 3,500 sale to Bubba Long . On December 31 , 2019 , it provided an addition to its allowance for doubtful accounts equal to 1.8 % of its credit sales . On June 1 2020 Filler wrote off as uncollectible the $ 3,500 account of Bubba Long ; and on December 25 , 2020 Bubba Long unexpectedly paid his account in full . Prepare the journal entries that Filler Company should make : ( a ) On December 31 , 2019 , to increase the allowance for doubtful accounts . ( b ) On June 1 , 2020 , to write off the bad debt ( ) On December 25 , 2020 , to record the unexpected collection from Bubba Long .