Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $20,000. The account had an unadjusted credit balance of $12,000 at that time.

Required:

Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a.	The appropriate bad debt adjustment was recorded.
b.	Later, an account receivable for $1,200 was determined to be uncollectible and was written off.