At December 31, Gill Co. reported accounts receivable of $236,000 and an allowance for uncollectible accounts of $750 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:

At December 31, Gill Co. reported accounts receivable of $227,000 and an allowance for uncollectible accounts of $700 (debit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: