At its December 31 year-end, the company estimates its bad debts as 0.40% of its annual credit sales of $826,000. The company records its bad debts expense for that estimate. On the following June 1, the company decides that the $413 account of a customer is uncollectible and writes it off as a bad debt. On July 21, the customer unexpectedly pays the amount previously written off.

Prepare the companys journal entries to record the transactions of December 31, June 1, and July 21.

Journal Entry 1 Record the estimated bad debts expense.

Journal Entry 2 Record write-off of customer's account as uncollectible.

Journal Entry 3 Reinstated customer's previously written-off account.

Journal Entry 4 Record the cash received on the account.