Riverton Supplies uses the allowance method for uncollectible accounts. At January 1, 2025 the Allowance for Doubtful Accounts had a credit balance of $4,200. During 2025 the following events occurred.
| Date | Event |
|---|
| March 12 | The account of Delta Interiors, $1,900, was determined to be uncollectible and was written off. |
| June 8 | The account of Fairfield Ltd., $1,100, was determined to be uncollectible and was written off. |
| September 20 | Delta Interiors unexpectedly paid $600 of the amount previously written off. (Reinstate the receivable, then record the collection.) |
| December 31 | An aging of accounts receivable indicated that the Allowance for Doubtful Accounts should have a balance of $5,300. |
Instructions:
- Journalize the 2025 transactions, including the December 31 adjusting entry for bad debt expense.
- Post to the Allowance for Doubtful Accounts ledger account (running balance format), starting from the January 1 balance.