Budke and Budke, a landscaping service, uses the allowance method to record the following transactions related to accounts receivable. Adjusting and closing entries completed during the current year ended December 31, 20--, are also described below.

Mar. 6		Received 50% of the $12,000 balance owed by Columbia Gardens, a bankrupt business, and wrote off the remainder as uncollectible.
June 12		Reinstated the account of Ramon Burgos, which had been written off in the previous year, and received $2,250 cash in full settlement.
Sept. 19		Wrote off the $13,800 balance owed by Kelly Richeson, who has no assets.
Nov. 9		Reinstated the account of Jackie Kwas, which had been written off in the preceding year, and received $2,175 cash in full settlement.
Dec. 27		Wrote off the following accounts as uncollectible, in compound entry form: Blair & Smith, $10,480; Land-scapes Unlimited, $8,570; Beekman Brothers, $22,500; B. J. McKay, $9,300.
31		Based on an aging analysis of $1,460,000 of accounts receivable, it was estimated that $73,500 will be uncollectible. Made the adjusting entry.
31		Made the entry to close the appropriate account to Income Summary.
		Selected accounts and beginning balances on January 1, 20--, are as follows:
		122.1	Allowance for Doubtful Accounts	$95,000 credit
		313	Income Summary	—
		532	Bad Debt Expense	—

Open the three selected accounts.

Allowance for doubtful debt:

The estimated uncollectible amount is $73,500.

The opening balance in allowance for doubtful account is $28,775.

Entries:

On March 6, 50% of 12,000 is written off and the rest is received in cash. Cash is debited by $6,000 , Allowance for doubtful accounts is debited by $6,000 and CG's account is credited by $12,000

On June 12, $2,250 is reinstated. RB's account is debited by $2,250 and Allowance for doubtful accounts credited by $2,250.

On September 19, $13,800 is written off. Allowance for doubtful accounts is debited by $13,800 and KR's account is credited by $13,800.

On November 9, $2,175 reinstated. JK's account is debited by $2,175 and Allowance for doubtful accounts credited by $2,175.

On December 27, multiple accounts written off totalling $50,850. Allowance for doubtful accounts is debited by $50,850 and Different receivables' account is credited by their respective amounts of $10,480 , $8,750 , $22,500 , $9,300 respectively.

On December 31, adjusting entry is made for $44,725 which brings the balance to $73,500. Bad debt expense is debited $44,725 and Allowance for doubtful accounts is credited by $44,725.

Income summary:

On December 31, bad debt expense is posted to income statement. Income summary is debited by $44,725 and Bad Debt expense is credited by $44,725. Balance of income summary is $44,725.

Bad debt expense:

On December 31, adjusting entry is made for $44,725. Bad debt expense is debited $44,725 and Allowance for doubtful accounts is credited by $44,725.

On December 31, bad debt expense is posted to income statement. Income summary is debited and Bad Debt expense is credited. The remaining balance is NIL.