At December 31, 2020, before any year-end adjustments, the Accounts Receivable balance of Sydney Clinic is $232,000. Allowance for Uncollectible Accounts has a credit balance of $8,510. Sydney prepares the following aging schedule for accounts receivable: (Click the icon to view the aging schedule.) 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. CE Requirement 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? Before we can assess whether the current balance of the allowance account is adequate, we first have to calculate a revised allowance for uncollectible accounts amount. (Round your answers to the nearest whole dollar.) Allowance for uncollectible accounts: Credit balance needed 0-30 Aging schedule 31-60 61-90 Over 90 Age of Accounts Subtotal Total Balance 0-30 Days Less: Unadjusted balance 232,000 $101,000 0.6% 31-60 Days $65,000 4.0 % 61-90 Days $52,000 10.0 % Over 90 Days $14,000 38 % Adjusting entry amount Estimated uncollectible Print Done