Buffalo Industries uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end.

1.Calculate the total estimated bad debts based on the information below.

# of days outstanding	total	0-30	31-60	61-90	91-120	over 120
Accounts receivable	$ 422,000	259,000	82,000	44,000	24,000	13,000
% uncollectible		1%	4%	5%	8%	11%
Estimated debt

2.Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,900 debit.

3.Of the above accounts, $4,700 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.

4.The company collects $4,700 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entries necessary to (1) restore the account and (2) record the cash collection.