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Innovative Tech company uses the percentage of credit sales method to estimate bad debts each...

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Accounting

Innovative Tech company uses the percentage of credit sales method to estimate bad debts each month and then using the aging methods at the year-end. During November, ITI sold services on account $120,000 and estimated that 1/4 of one percent of those sales would be uncollectible. At its December 31 year-end, total Accounts Receivable is $97,700 aged as follows: (1) 1-30 days old, $82,000 (2). 31-90 days old; and (3) more than 90 days old $4700. Experience has shown that for each age group, the average rate of uncollectiblity is (1) 11 percent, (2) 22 percent, and (3) 44 percent, respectively. Before the end of year adjusting entry is made, the Allowance for Doubtful Accounts has a $1959 credit balance at December 31.
Rcord the adjusting entry for bad debts as of November 30

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