At December 31, 2021, Swifty Company had a credit balance of $15,400 in Allowance for Doubtful Accounts. During 2022, Swifty wrote off accounts totaling $12,800. One of those accounts of $3,000 was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $30,600. Prepare journal entries to record the 2022 transactions of Swifty Company.

Allowance for doubtful accounts Dr $12,800

Accounts receivables Cr $12,800

(To record amount written off)

Accounts receivables Dr $3,000

Allowance for doubtful accounts Cr $3,000

(To reverse writeoff)

Cash Dr $3,000

Accounts receivables Cr $3,000

(To record collection of writeoff)

Bad debt expenses Dr $25,000

Allowance for doubtful accounts Cr $25,000

Workings:

Balance before adjustment in Allowance             $5,600

for doubtful accounts (15,400-12,800+3,000)

Less: Required amount                                           $30,000

Additional provision required                               $25,000

answer; read and consider the content of the items;