ABC Company uses balance sheet approach to estimate uncollectible accounts. Prior to the adjusting entry at December 31, 2020, the balance of Accounts Receivable is $134,000. The Allowance for Doubtful Accounts, on the other hand, has a credit balance of $16,890. During 2021, ABC has the following transactions: January 3 Accounts receivable in the amount of $7,575 becomes worthless. ABC writes off this amount February 4 ABC receives $1,375 from a customer. This amount is part of the accounts receivable written off previously on January 3. On December 31, 2021. ABC Company prepares the following aging schedule for its accounts receivable Age Groups Receivables Balance Estimated Percent of Uncollectible accounts $160,000 $40,000 5% 0-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due 6% $18,000 20% $19,000 459 In recording the transaction on February 4, 2021