Aging Method On January 1, 2018, Khalid Inc. has the following balances for accounts receivable and allowance for doubtful accounts:

During 2018, Khalid had \(\$ 18,500,000\) of credit sales, collected \(\$ 17,945,000\) of accounts receivable, and wrote off \(\$ 60,000\) of accounts receivable as uncollectible. At year-end, Khalid performs an aging of its accounts receivable balance and estimates that \(\$ 52,000\) will be uncollectible.
\section*{Required:}
1. Calculate Khalid's preadjustment balance in accounts receivable on December 31, 2018.
2. Calculate Khalid's preadjustment balance in allowance for doubtful accounts on December \(31,2018\).
3. Prepare the necessary adjusting entry for 2018 .
\section*{Cornerstone Exercise

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Accounts Receivable Allowance for Doubtful Accounts (a credit balance) $1,280.000 44,000