On January 1, 2019, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts:
Accounts Receivable ..................................................... $1,280,000
Allowance for Doubtful Accounts (a credit balance) ..................... 44,000
During 2019, Hungryman 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, Hungryman performs an aging of its accounts receivable balance and estimates that $52,000 will be uncollectible.
Required:
1. Calculate Hungryman's pre-adjustment balance in accounts receivable on December 31, 2019.
2. Calculate Hungryman's pre-adjustment balance in allowance for doubtful accounts on
December 31, 2019.
3. Prepare the necessary adjusting entry for 2019.