At December 31, 2020, before any year-end adjustments, the Accounts Receivable balance of Sydney Clinic is $236,000. Allowance for Uncollectible Accounts has a credit balance of $8,596. Sydney prepares the following aging schedule for accounts receivable:

		Age of Accounts
Total Balance		030 Days		31-60 Days		61-90 Days		Over 90 Days
236,000		$113,000		$58,000		$45,000		$20,000
Estimated uncollectible		0.8 %		1.5 %		5.0 %		46 %

Requirements

1.	Based on the aging-of-receivables method, is the unadjusted balance of the allowance account adequate? Is it too high or too low? How does management determine what percentages to use for estimating uncollectible accounts?
2.	Make the entry required by the aging schedule. Prepare a T-account for the allowance.
3.	Show how Sydney will report Accounts Receivable on its December 31 balance sheet. Include the two accounts that come before receivables on the balance sheet, using assumed amounts.