16. Jung Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2010, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:

Estimated Percentage

Age of accounts Uncollectible

Current Accounts $140,000 1%

030 days past due 15,000 3%

3160 days past due 10,000 6%

6190 days past due 12,000 10%

Over 90 days past due 8,000 25%

Total Accounts Receivable $185,000

Instructions

(a) Prepare the adjusting entry on December 31, 2018, to recognize bad debts expense.

(b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $500 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts.