Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $50,000, the bad debt expense account had a balance of $0, and the allowance for doubtful accounts had a credit balance of $5,000. Journalize the remaining journal entries for the 2020 year.

Required

1. Prepare journal entries to record the transactions. Note: write-off of uncollectible accounts for Rocky Co. and Grouse Co. should be posted separately.

2. Draw and fill in the T-account for accounts receivable, bad debt expense, and allowance for doubtful accounts. Determine the ending balance for each account.

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Sold tents for $5,000 on account with a cost of $2,500. Dec. Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,200 and Grouse Co. 20 with an accounts receivable balance of $2,500 were uncollectible and needed to be written off. 23 Unexpectedly received payment from Grouse Co. for $2,500. Estimated that 10% of accounts receivable recorded to date would be uncollectible. 31