At January 1, 2020, Lincoln Inc. had a credit balance in its Allowance for Doubtful Accounts (AFDA) of $10,000. During 2020, Lincoln estimated bad debt expense by taking a percentage of net sales on account. Net sales for 2020 were $500,000 and 80% of these sales were made on account. Bad debt expense was estimated to be equal to 1% of net sales on account. During the year, receivables amounting to $20,000 were written off against AFDA. At December 31, 2020, Lincoln reviewed its aged accounts receivable and estimated that the AFDA at period end should be $35,000. Instructions: Prepare a schedule calculating the balance in Lincoln's AFDA account at December 31, 2020. Prepare any journal entry needed at year end to adjust AFDA to the required balance