Batterman, Inc uses the Allowance Method to estimate bad debts 

The balance in Allowance for Doubtful Accounts was $800,000 on January 1, 2020 

During 2020, Batterman, Inc performed internal audit services 

An aging of accounts receivable was prepared for the first time as of December 31, 2020 

A summary of the aging (before adjustments below) is as follows 

Classification by Month of Sale Balance in Each Category Estimated Uncollectible 

OctoberDecember 2020 1,321,000 5 

JulySeptember 223,000 12 

JanuaryJune 657,000 28 

Prior to 1120 2,475,000 75 4,676,000 

Additional Information 

Receivables from 2012 totaling $695,300 were written off as of December 31, 2020 

A credit balance exists in Accounts Receivable (JanJune) for $120,780, which represented an unpaid electric bill Additional cash collections were received from accounts (JanJune) previously written off for $35,720 

Cash collections were processed late in December 2020 for 325,000 

Prepare the journal entries for the adjustments above 

Calculate the Bad Debt Expense for 2020 (after adjustments) 

Prepare the journal entry to record the 2020 adjustment to the Allowance for Doubtful Accounts