For a business that uses the allowance method of accounting for uncollectible receivables:

Journalize the entries to record the following:

Record the adjusting entry at December 31,2010, the end of the fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the contra asset account before adjustment has a debit balance of $600. Analysis of the receivables indicates uncollectible receivables of $18,600.

In March, 2011, the $450 owed by Fronk Co. on account is written off as uncollectible.

In November, 2011, the $300 of the Fronk Co. account is reinstated and payment of that amount is received.

In December, 2011, $300 is received on the $700 owed by Dodger Co. and the remainder is written off as uncollectible.