Adventure Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 30-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of receivables of a specific age will not be paid as follows: (1) 1%, (2) 13%, and (3) 39%, respectively. At December 31, 2016, the unadjusted credit balance in the Allowance for Doubtful Accounts was $220. The total Accounts Receivable in each age category were: (1) 1-30 days old, $63,000, (2) 30-90 days old, $14,000, and (3) more than 90 days old, $6,000.

a.

Calculate the estimate of uncollectible accounts at December 31, 2016.

b.	Prepare the appropriate adjusting entry dated December 31, 2016.