Kevin Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 2% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2019, and December 31, 2020, appear below:

12/31/19 12/31/20

Net Credit Sales $820,000 $670,000

Accounts Receivable 230,000 350,000

Allowance for Doubtful Accounts 4,600 ?

Instructions

(a) Journalize the following events in 2020.

Aug. 10 Determined that the account of Casey Gerald for $1,200 is uncollectible.

Sept. 12 Determined that the account of Tom Land for $2,000 is uncollectible.

Oct. 10 Received a check for $400 as payment on account from Casey Gerald, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November.

(b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2020.

(c) What is the balance of Allowance for Doubtful Accounts at December 31, 2020?