5.4

On January 1, Hungryman inc, has the following balances for accounts receivable and aliowance for doubtful accounts: During the year, Hungryman had $1,080,000 of credit sales, collected $745,200 of accounts receivabie, and wrote off $29,000 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $38,500 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accounts receivable on December 31. 4 2. Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December 31 . 3. Prepare the necessary adjusting entry for the year. If an amount box does not require an entry, leave it blank