A trial balance for Foerch Company shows the following balances at December 31:

	Debit	Credit
Accounts Receivable	$120,000
Allowance for Doubtful Accounts		$200
Sales		360,000
Sales Discounts	10,000

Instructions:

Prepare the adjusting entry necessary at December 31 to provide for estimated uncollectibles under each of the following independent assumptions.

a. Foerch Company uses the percentage of sales method of accounting for uncollectible accounts. Company experience indicates that 1% of net sales will prove uncollectible.

b. Foerch bases its estimates of uncollectible accounts on an aging of accounts receivable. The aging at December 31 indicates uncollectible accounts of $4,000.

Answer in the following format!

a.

	General Journal
Date	Account Title	Debit	Credit

b.

	General Journal
Date	Account Title	Debit	Credit