On January 1, 2019, Smith Inc. has the following balances for accounts receivable and allowance for doubtful accounts:
Accounts Receivable ................................................. $382,000
Allowance for Doubtful Accounts (a credit balance) ................ 4,200
During 2019, Smith had $2,865,000 of credit sales, collected $2,905,000 of accounts receivable, and wrote off $3,850 of accounts receivable as uncollectible. At year end, Smith performs an aging of its accounts receivable balance and estimates that $3,800 will be uncollectible.
Required:
1. Calculate Smith's pre-adjustment balance in accounts receivable on December 31, 2019.
2. Calculate Smith's pre-adjustment balance in allowance for doubtful accounts on December 31, 2019.
3. Prepare the necessary adjusting entry for 2019?