At December 31, 2016, the trial balance of Garvey Company contained the following amount before adjustment.

Debits Credits

Accounts Receivable $ 500,000

Allowance for Doubtful Accounts $ 4,800 Sales Revenue 2,400,000

Instructions:

(a) Prepare the adjusting entry at December 31, 2016, for bad debts expense assuming that the aging schedule indicates that $26,000 of accounts receivables will be uncollectible..

(b) Repeat part (a), assuming that instead of a credit balance there is a $4,800 debit balance in the Allowance for Doubtful Accounts.

(c) During the next month, January 2017, a $5,000 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off.