ABC Companys accountant had prepared the following schedule for its accounts receivable for its 2019 year-end:

Accounts Receivable Category	Amount	Proportion expected to Default
Not yet due	$111,000	1%
1-30 days past due	45,000	3%
31-60 days past due	19,500	10%
61-90 days past due	4,500	20%
Over 90 days past due	7,500	40%

Before adjusting entries are entered, the pre-adjusted balance in the Allowance for Doubtful Accounts at December 31 (year-end date) showed a credit balance of $2,700.

Required:

1. Based on the above information, the post adjustment balance in ABCs Allowance for Doubtful Accounts at December 31, 2019 should be (4 marks):

__________________________

2. Determine the bad debts expense for ABC for 2019 (2 marks):

__________________________

3. Assume that in January 2020, accounts receivable of $3,456 were written off as uncollectible and an accounts receivable of $468 that was previously written off in December 2019, was collected. Give the necessary journal entries (4 marks).

	Debit	Credit
To write -off uncollectible accounts receivable
To collect accounts receivable previously written off