At December 31, 2017, Tri Town Imports Inc. reported this information on its balance sheet. Accounts receivable $590,000 44,000 Less: Allowance for doubtful accounts During 2018, the company had the following summary transactions related to receivables and sales. Tri Town uses the perpetual inventory system. 1. 2. 3. Sales on account amounted to $2,374,000. The cost of the inventory sold was $1,899,200. Sales returns and allowances with a total sales price of $43,000 and a cost of $34,400 were restored to inventory. Collections of accounts receivable were $2,091,000. Write-offs of accounts receivable deemed uncollectible, $49,300. Recovery of bad debts previously written off as uncollectible, $15,600. 4. 5. Prepare the journal entry to record bad debts expense for 2018, assuming that aging the accounts receivable indicates that estimated uncollectible accounts receivable are $42,900. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit