Answer and Explanation:
The journal entries are as follows
On December 31
Bad debt expense Dr $2,337 ($779,000 × 0.30%)
To Allowance for doubtful debts $2,337
(Being the estimated bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the allowance as it decreased the assets
On Feb 01
Allowance for doubtful debts Dr $390
To Account receivable $390
(Being the written off amount is recorded)
For recording this we debited the allowance as it increased the allowance and credited the account receivable as it decreased the assets
On June 5
Account receivable $390
To Allowance for doubtful debts Dr $390
(Being the uncollected amount is recorded)
For recording this we debited the account receivable as it increased the assets and credited the allowance as it decreased the assets
On June 5
Cash Dr $390
To Account receivable $390
(Being the cash received on account is recorded)
For recording this we debited the cash as it increased the assets and credited the account receivable as it decreased the assets
