ABC Company uses the allowance method for estimating bad debts. Record the following journal entries: 12/31 ABC Company estimates that $5,000 of accounts receivable will be uncollectible.
3/5 ABC Company wrote off a $1,200 account of a customer, B. Brown.

Date       Account titles and Explanations          Debit     Credit

31 Dec    Bad debts expense                              $5,000

                    Allowance for uncollectible accounts           $5,000

              (To record bad debts expense recorded)

5 Mar      Allowance for uncollectible accounts  $1,200

                    Accounts receivable                                       $1,200

              (To record account written off)

answer(8,000.)