Aging Method}

Spotted Singer sells karaoke machines to businesses and consumers via the Internet. On January 1, 2018, Spotted Singer Inc. has an accounts receivable balance of \(\$ 997,000\) and a credit balance in its allowance for doubtful accounts of \(\$ 24,000\). During 2018 , Spotted Singer had \(\$ 10,800,000\) of credit sales, collected \(\$ 1,725,000\) of accounts receivable, and had customer defaults of \(\$ 45,000\). At yearend, an aging analysis indicates that \(\$ 28,000\) of Spotted Singer's receivables will be uncollectible.

\section*{Required:}

1. Calculate Spotted Singer's balance in accounts receivable ón December 31, 2018, prior to the adjustment.

2. Calculate Spotted Singer's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment.

3. Prepare the necessary adjusting entry for 2018 .

\section*{Brief Exercise