The following data relates to Medicore Inc. for the year 2020:

Credit sales for 2020:$6,500,000

Sales returns and allowances for 2020:$300,000

Accounts receivable as at Dec. 31, 2020:$750,000

Allowance for doubtful accounts as at Jan. 1, 2020:$18,000

Medicore estimates its bad debt expense during the year as 0.2% of net credit sales. On May 15, 2020, Medicore unexpectedly collected $10,000 of a previously written-off account.

Required:

1. Record the journal entries for:The collection of the previously written-off account on May 15;
2. Bad debt expense for the year.
3. After the journal entries from a) had been completed, management reviewed the balance in the allowance for doubtful accounts, and determined that it should be 5% of gross accounts receivable.Prepare the adjusting journal entry required.