During 2024, credit sales were $1,750,000, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a customer whose account was written off in 2023. An aging of accounts receivable at December 31, 2024, reveals the following:

Required:

1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the receivable previously written off.

2.Prepare the year-end adjusting entry for bad debts according to each of the following situations:

A.Bad debt expense is estimated to be 3% of credit sales for the year.

B. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.

C. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

1.Record accounts receivable written off during the year 2024.

2. Record entry to reinstate an account receivable previously written off.

3.Record collection of an account receivable previously written off.

\begin{tabular}{lcc} \multicolumn{1}{c}{ Age Group } & PercentageofYear-EndReceivablesinGroup & PercentUncollectible \\ 96 days & 65% & 4% \\ 6196 days & 2 & 15 \\ 9112 days & 19 & 25 \\ Over 12 days & 5 & 49 \end{tabular}