?At December $31$ ?last year, the balance sheet prepared by Pedro Montoya included $$504,000$ ?in accounts receivable and an allowance for doubtful accounts of $$26,400.$

During January of the current year selected transactions are summarized as follows:

$(1)$ ?Sales on account $...$ ?$$368,000$

$(2)$ ?Sales returns & allowances $...7,360$

$(3)$ ?Cash collections from customers $($no cash discounts$)...364,800$

$(4)$ ?Account receivable from Acme Company written off as worthless... $9,280$

After a careful aging and analysis of all customers' accounts at January $31,$ ?it was decided that the allowance for doubtful accounts should be adjusted to a balance of $$29,280$ ?in order to reflect accounts receivable at net realizable value in the January $31$

balance sheet.

Instructions:

Give the appropriate entry in general journal form for each of the four numbered items above and the adjusting entry at January $31$ ?to provide for uncollectible accounts.

Show the amounts of accounts receivable and the allowance for doubtful accounts as they would appear in a partial balance sheet at January $31.$

Assume that three months after the receivable from Acme Company had been written off as worthless, Acme Company won a large award in the settlement of patent litigation and immediately paid the $$9,280$ ?debt to Pedro Montoya. Give the journal entry or entries $($in general journal form$)$ ?to reflect this recovery of a receivable previously written off.