At the end of 2019, Geisel, Inc has a $1,000 debit balance in the Allowance for Doubtful Accounts, before adjusting entries were prepared. Credit sales for 2019 totaled $510,000. Sales returns for 2019 were $10,000. Credit Sales for 2018 were $610,000. Sales returns for 2018 were $10,000. The following aging analysis of Accounts Receivable was prepared at December 31, 2019:

Age Classification	12/31/19 $ Amount	Estimated % Uncollectible
Current/not yet due	110,000	1%
1-30 days past due	15,000	2%
31-60 days past due	10,000	6%
61-90 days past due	5,000	12%
over 90 days past due	8,000	30%
Total	$148,000

Required:

1. Prepare the December 31, 2019 adjusting entry using the aging analysis approach to estimate bad debts. [1 mark]

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