Anderson starts the year with Accounts Receivable $51,000 (Dr.), and Allowance for Doubtful Accounts $4,000 (Cr.). During the year, Anderson made net credit sales $400,000, collected cash $385,000 from customers, and wrote-off $3,000 of accounts that were deemed uncollectible.

At the end of year, what are the unadjusted trial balance for accounts receivable and Allowance for doubtful accounts?

At the end of the year, the accountant decides that about 3% of outstanding accounts receivables are uncollectible. Prepare the adjusting journal entry.

Ignore the information in Part b. At the end of the year, the accountant estimates that 1.5% of credit sales are uncollectible. Prepare partial balance sheet at the end of year to present accounts receivable.