During its first year of operations, Turning Leaves Furniture Restoration Inc. had sales of $$900,000,$ all on account. Industry experience suggests that Turning Leaves Furniture Restoration's bad debt expense will be $$19,800.$ At December $31,2019,$ Turning Leaves Furniture Restoration's accounts receivable total $$60,000.$ The company uses the allowance method to account for uncollectibles.

Requirements

Make Turning Leaves Furniture Restoration's journal entry for bad debt expense.

Show how Turning Leaves Furniture Restoration could report accounts receivable on its balance sheet at December $31,2019,$ by disclosing the allowance for uncollectible accounts.