Question 1. Bad Debts

The Alberta Company uses the allowance method for accounting for doubtful accounts. In March, the company wrote off the $1,500 overdue account of Jane Doe; the account had been outstanding for six months. In May, two months after writing off the account, Jane Doe paid $1,100 of her account which had been written off. Record the required journal entries for March and May. On December 31, the Lethbridge Company recorded bad debts expense of $4,500. On June 15, the company wrote off the uncollectible $350 account of Mr. S. Jones. On July 20, the company wrote off the $1,200 uncollectible account of J. Smith. On November 4, Mr. J Smith paid his account, which had been written off, in full. Record the required journal entries.