A B 1 BDEM (V2) Flounder Corp. had record sales in 2020. It began 2020 with an Accounts Receivable balance of $485,000 and a credit balance in Allowance for Doubtful Accounts of $40,000. Flounder recognized credit sales during the year of $6,670,000 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year, the company wrote off $36,400 of accounts that were deemed to be uncollectible, although one customer whose $4,200 account had been written off surprised management by paying the amount in full in late September. Including this surprise receipt, $6,554,000 cash was collected on account in 2020. 2 3 4 To assess the reasonableness of the allowance for doubtful accounts, the controller prepared the following aged listing of the receivables at December 31, 2020: 5 6 Days Account Outstanding Amount Probability of Collection 989 92% 7 Less than 16 days 8 Between 16 and 30 days 9 Between 31 and 45 days 10 Between 46 and 60 days Between 61 and 75 days 012 Over 75 days $279,500 124,000 83,000 39,000 80% 74% 18,700 50% 0% 24,600 568,800 15 Instructions: Flounder Corp. uses the amount indicated by the year-end aging analysis of accounts receivable to estimate its allowance for doubtful accounts for the year ended December 31, 2020. Based on all of the facts provided, prepare the adjusting entry to bring the Allowance for Doubtful Accounts to its proper 16 balance at year end. You must show all work including calculations and the support for the calculations to earn full credit for this question. A B 1 BDEM (V2) Flounder Corp. had record sales in 2020. It began 2020 with an Accounts Receivable balance of $485,000 and a credit balance in Allowance for Doubtful Accounts of $40,000. Flounder recognized credit sales during the year of $6,670,000 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year, the company wrote off $36,400 of accounts that were deemed to be uncollectible, although one customer whose $4,200 account had been written off surprised management by paying the amount in full in late September. Including this surprise receipt, $6,554,000 cash was collected on account in 2020. 2 3 4 To assess the reasonableness of the allowance for doubtful accounts, the controller prepared the following aged listing of the receivables at December 31, 2020: 5 6 Days Account Outstanding Amount Probability of Collection 989 92% 7 Less than 16 days 8 Between 16 and 30 days 9 Between 31 and 45 days 10 Between 46 and 60 days Between 61 and 75 days 012 Over 75 days $279,500 124,000 83,000 39,000 80% 74% 18,700 50% 0% 24,600 568,800 15 Instructions: Flounder Corp. uses the amount indicated by the year-end aging analysis of accounts receivable to estimate its allowance for doubtful accounts for the year ended December 31, 2020. Based on all of the facts provided, prepare the adjusting entry to bring the Allowance for Doubtful Accounts to its proper 16 balance at year end. You must show all work including calculations and the support for the calculations to earn full credit for this