At the end of its annual accounting period, Midi Company estimated its bad debts as $0\mathrm{.}65\%$ of its $$1,850,000$ of credit sales made

during the year. On December $31,$ Midi made an addition to its Allowance for Doubtful Accounts equal to that amount. On the following

February $1,$ management decided that the $$2,600$ account of Catherine Hicks was uncollectible and wrote it off as a bad debt. Four

months later, on June $5,$ Hicks unexpectedly paid the amount previously written off.

Give the journal entries required to record these transactions.

Journal entry worksheet

Record the entry for estimated bad debts.

Note: Enter debits before credits.