1.

Crabbe Apple Ltd. had an $1,100 credit balance in Allowance for Doubtful Accounts at December 31, 2023, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:

				Estimated Percentage
				Uncollectible
	Current Accounts	$180,000		1%
	1-30 days past due	16,000		2%
	31-60 days past due	13,000		8%
	61-90 days past due	10,000		15%
	Over 90 days past due	6,000		40%
	Total Accounts Receivable	$225,000

Required

• Prepare the adjusting entry on December 31, 2023, to recognize bad debts expense.  Show how accounts receivable would be shown on the statement of financial position after this adjustment.
• Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $300 debit balance before the current year's provision for uncollectible accounts.  Prepare the adjusting entry for the current year's provision for uncollectible accounts.  Show how accounts receivable would be shown on the statement of financial position after this adjustment.