ACME Plumbing estimates that $1\%$ of each months net credit sales will be

uncollectibile. The sales for the first quarter were $$100,000$ split evenly

throughout the quarter and $90\%$ of those sales were on account.

The second quarter saw a spike in sales in April, $$50,000$ net credit sales

with May and June falling to $$25,000$ credit sales each month.

The last half of the year had $$800,000$ credit sales recorded.

Year end accounts receivable were $$90,000.$

The aging report showed $$45,000$ current, $$25,000$ over $45$ days and $$20,000$

over $100$ days.

Management applied the following estimates of impairment on the groups

Current $2\%$

$45$ plus $10\%$

$100$ plus $25\%$

Required

Would ACME Plumbing have to adjust their allowance for expected

credit losses before issuing their SFP$?$

If so what would the journal entry be$?$