Analyzing and Reporting Receivable Transactions and Uncollectible Accounts (Using Percentage-of-Sales Method)

At the beginning of 2014, Penman Company had the following (normal) account balances in its financial records:

Accounts Receivable	$122,000
Allowance for Uncollectible Accounts	7,900

During 2014, its credit sales were $1,173,000 and collections on credit sales were $1,150,000. The following additional transactions occurred during the year:

Feb.17	Wrote off Nissims account, $3,600.
May.28	Wrote off Weisss account, $2,400.
Dec.15	Wrote off Ohlsons account, $900.
Dec.31	Recorded the provision for uncollectible accounts at 0.8% of credit sales for the year. (Hint: The allowance account is increased by 0.8% of credit sales regardless of any prior write-offs.)

Compute and show how accounts receivable and the allowance for uncollectible accounts are reported in its December 31, 2014, balance sheet.