Radico Ltd$.$ Sold $$450,000$ during May $2022,$ of which $70\%$ are cash sales.

It is the practice of the business to provide $3\%$ as allowance for bad debts

In the month of October, it became known that a customer from whom $$2,800$ is receivable could not be collected and $50$ was written$-$off. A year later, his estate sent a cheque for $$1,200$ in full and final settlement of their account. Please prepare all necessary journal entries and find out the balance in the account of allowance for bad debts. Radico Ltd$.$ Prepares monthly financial statements.