Apply the allowance method to accounts receivable:

Cosmo Company reported credit sales of $345,000 for the calendar year 2015, its first year of operations. On December 31, 2015, customers buying on credit owed $35,000 to the company. Based on the experience of similar businesses, management estimates that $3,500 of its accounts receivable will be uncollectible. Prepare the necessary December 31 adjusting entry by selecting the correct account names and dollar amounts