At the beginning of 20xx, the balances for Accounts Receivable and Allowance for Uncollectible Accounts were $430,000 and $31,400, respectively. During the year, credit sales were $3,200,000, and collections on account were $2,950,000. In addition,

$35,000 in uncollectible accounts were written off.

Using T accounts, determine the year-end balances of Accounts Receivable and Allowance for Uncollectible Accounts. Then make the year-end adjusting entry to record the uncollectible accounts expense and show the year-end balance sheet presentation of Accounts Receivable and Allowance for Uncollectible Accounts under each of the following conditions:

a. Management estimates the percentage of uncollectible credit sales to be 1.2 percent of total credit sales.

b. Based on an aging of accounts receivable, management estimates the end-of-year uncollectible accounts receivable to be $38,700.

Post the results of each of the entries to the T account for Allowance for Uncollectible Accounts. E-8