account 202

i want the explanation too

ABC Company uses income statement approach to estimate uncollectible accounts as 2% of credit sales. Total credit cales for the period amount to $87,000. Prior to adjusting entry at the end of the period, the balances of accounts receivable and allowance for doubtful accounts are \$178,000 (debit balance) and \$1,000 (credit balance), respectively. In order to record the adjusting entry at the end of the period