A company's year-end unadjusted trial balance reports sales of $400,000, accounts receivable of $111,000, and allowance for doubtful accounts with a credit balance of $720. The company estimates uncollectibles to be 1.50% of accounts receivable.

Record the entry for the December 31 year-end adjusting entry for uncollectibles.

Journal Entry 1 Record the estimate of uncollectibles.

Journal Entry 2 Assume instead that the year-end unadjusted balance in the allowance for doubtful accounts was a debit balance of $900. What amount would have been used in the year-end adjusting entry?

Amount used in the year-end adjusting entry