The trial balance of Watson International for Dec. 31, 2016, includes the following balances:

Debit Credit

Sales $600,000 (credit

Sales Returns Allowances $32,000 (debit)

Accounts Recievable $140,000 (debit)

Allowance for Doubtful Accts $4,700 (credit

If the estimate for uncollectibles is made by taking 2% of net sales, estimate bad debt expense and provide the journal entry to fund the Allowance for Bad Debts account.

If the estimate for uncollectibles is made by taking 11% of gross account receivables, estimate bad debt expense and provide the journal entry to fund the Allowance for Bad Debts account.

Provide the journal entry to write off $7200 in accounts receivables.

Suppose $2400 of the $7200 previously written off receivables ended up being paid. What journal entry (or entries) would you use to handle this transaction.