10 Innovative Tech Inc. (II) has been using the percentage of credit sales method to estimate bad debts. During November IT sold services on account for $140,000 and estimated that 1/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $86.700, aged as follows: (1) 1-30 days old. $72.000 (2) 31-90 days old, $11,000, and () more than 90 days old $3.700, The average rate of uncollectibility for each age group is estimated to be (0) 11 percent. (2) 22 percent and (3) 44 percent, respectively. Prepare a schedule to estimate an appropriate year end balance for the Allowance for Doubtful Accounts 3. Before the end of year adjusting entry is made, the Allowance for Doubtful Accounts has a $1450 credit balance at December 31 Prepare the December 31 adjusting entry. 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet View transaction list 39 Journal entry worksheet 90 Total % Accounts Receivable Estimated Uncollectible () Estimated Uncollectible ($) Required 1 Required 2 Required 3 Required 4 Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,450 credit balance at December 31. Prepare the December 31 adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet