Cardiff Company has a December 31 year-end. The company uses the aging method to estimate bad debts at year-end. For interim reporting, the company uses the percentage-of-sales method because it is simpler. In March of 2021, the company identified a $78,000 receivable from Dashwood Inc. as uncollectible. Upon further consideration, staff concluded that the write-off should have occurred in the 2020 fiscal year because the information about the un-collectibility of the account was available at the time. The general ledger accounts for 2020 have already been closed. 

Required:

a. Record the entry to write off the uncollectible account. 

b. Record any adjusting journal entries necessary to correct the error in Cardiff ’s accounts.