SolarWat, an Israeli energy company, builds specially designed solar panels. The solar energy produced by these panels is used in farming. The company started the year with the following accounts receivable position:

Accounts receivable $ 12,500,000 (465,000) $ Less: Allowance for doubtful accounts 12,035,000 Solar Wat uses the Allowance Method in accounting for its Accounts Receivable. During the year, Agro-Shelef, a customer who buys solar panels from Solar Wat, was devastated by an unusually severe storm. At that time, Solar Wat concluded that it was highly unlikely that Agro-Shelef would ever be able to pay its outstanding balance of $165,000 of receivables. This balance was accordingly written off. Much later in the year, Agro-Shelef was rescued by a group of investors who offered to pay Solar Wat $110,000 toward the unpaid balance provided Solar Wat would permanently forgive the other $55,000 of balance and resume selling solar panels to Agro-Shelef. Solar Wat agreed and has since resumed doing business with Agro-Shelef. During the year, sales on account amounted to $25,689,000. Collections on account totaled $21,300,500 (excluding the collection made from Agro-Shelef's investors). Also during the year, accounts written off (not including the Agro-Shelef transaction) were $135,000. At year's end, a detailed analysis of accounts receivable was performed, and management estimates 4.5% of its outstanding accounts receivable to be uncollectible. Prepare the journal entries. Round answers to the nearest dollar. To establish the correct balance in the allowance for uncollectibles Account Debit Credit