The following information is available at December 31st for Byron Inc.:

Number of Days Outstanding	Accounts Receivable	Estimated Percentage Uncollectable
1-30 days	$85,000	5%
31-60 days	25,000	15%
61 - 90 days	10,000	25%
Total	120,000

Instructions

Calculate the estimated value of uncollectible accounts and the net realizable value of Byrons accounts receivable at December 31st.

Prepare the adjusting journal entry at December 31st to record bad debt expense given that the Allowance for Doubtful Accounts has a credit balance of $2,000 prior to any adjustments.

Prepare the required journal entry if Byron Inc. learns that $2,500 from Galt Supplies Ltd. Is not collectible.

Prepare the required journal entry if Bryon Inc. subsequently collects the $2,500 from Galt Supplies Ltd. that was previously written off.