At the end of the current year, the trial balance of Kerry Hardware included the accounts and balances shown below. Credit sales were $7,000,000. Returns and allowances on these sales were $55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.4 percent of net credit sales.

Accounts Receivable	$	650,000	Dr.
Allowance for Doubtful Accounts		4,500	Cr.

1.	What is the estimated loss from uncollectible accounts for the current year?

Estimated loss

$

2.	What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?

Amount of adjusting entry

$