On December 31,2010, the Accounts Receivable balance of Alterations Express is $300,000. The Allowance for Uncollectible Accounts has a $3,900 credit balance. Alterations prepares the following aging schedule for its accounts receivable:

Requirements 1. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on December 31, 2010.
2. Assume that instead of a $3,900 credit balance, there is a $1,300 debit balance in the Allowance account prior to adjustment. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on December 31, 2010.

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Age of Accounts 1-30 31-60 61-90 Over 90 Days Days Days Days Accounts Receivable.... $140,000 $80,000 $70,000 $10,000 Estimated Percentage Uncollectible. 0.5% 1.0% 6.0% 50%