1. XYZ Company estimates their allowance for doubtful accounts by aging their accounts receivable. At the end of 2019, the normal balance in the allowance for doubtful accounts was $165,000. During 2020, XYZ wrote off $16,000 and collected a $14,000 receivable that had previously been written off as uncollectible. At the end of 2020, the aging schedule indicated that the balance in the allowance for doubtful accounts should be $187,000. (3 marks)

Required:

Prepare the journal entries for:

1. The balance that was written off during 2020.
2. The collection of the receivable that had been previously written off.
3. The bad debt expense that is required to be recorded in 2020.