Answer:
Explanation:
The journal entries are shown below:
On December 31:
Bad debt expense A/c Dr $4,875 ($487,500 × 1%)
To Allowance for Doubtful debts A/c $4,875
(Being bad debt expense is recorded)
On February 1:
Allowance for doubtful accounts A/c $580
To Accounts receivable A/c Dr $580
(Being the uncollectible amount is recorded)
On June 5:
Accounts receivable A/c Dr $580
To Allowance for doubtful accounts A/c $580
(Being allowance for doubtful accounts is recorded)
On June 5:
Cash A/c Dr $580
To Accounts receivable A/c Dr $580
(Being the amount received)
We assume the first entry is recorded on December 31
