XYZCo uses the allowance method for bad debts . The unadjusted balances for the relevant GL accounts as of December 31, 2019 are as follows:

Accounts Receivable: 3,250,000

Allowance for Bad Debts: (175,000)

Bad Debt Expense:65,000

XYZCo needs to make the following adjustments as of 12/31/19:

a. Write off an uncollectible receivable from BobCo in the amount of $250,000

b. Record the receipt of $35,000 from bankruptcy court related to Janeco The receivable was previously written off in 2018

c. XYZCo computes its allowance for bad debts based on 5.0% of the balance in accounts receivable at month end.

Prepare the journal entries required to record the above adjustments as of 12/31/19. Be sure to include a brief description for each adjustment.

For problem above- show the adjusted balances in the following accounts as of 12/31/19. Show your computations on the computation sheet.

Adjusted balances as of 12/31/19

Accounts Receivable:

Allowance for bad Debts:

Bad Debt Expense: