At yearend, December Corolla Sales showed unadjusted balances of $ in Accounts Receivable; $ debit in Allowance for Doubtful Accounts; and $ in Sales. Uncollectible accounts are estimated to be of sales.
Unadjusted balances at December were Accounts Receivable, $; Allowance for Doubtful Accounts, $ credit; and Sales, $ Corolla Sales changed the method of estimating uncollectible accounts to of outstanding accounts receivable.
At December the general ledger showed unadjusted balances of $ in Accounts Receivable; $ debit in Allowance for Doubtful Accounts; and $ in Sales. Corolla prepared an aging analysis on December that estimated total uncollectible accounts to be $
Required:
Prepare the and yearend adjusting entries to estimate uncollectible accounts.
