A trial balance before adjustment included the following accounts with normal balances. The entry to record the bankrupt account write-off has not been recorded.

Account Balance

Accounts Receivable $90,000

Allowance for Doubtful Accounts 7,000

Sales Revenue 250,000

Sales Returns and Allowances 10,000

Additional information: One of the credit customers who owed $6,000 went bankrupt.

Prepare the journal entry to write-off the bankrupt customers account. State the financial statement impact of this journal entry and explain why this is the impact. (you may answer this question immediately below the journal entry on the journal entry form.)

Prepare the required journal entry for uncollectible accounts assuming that the estimate of uncollectibles is based on 5% of accounts receivable.