At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. For each of the prior five years, you ask the service firm to provide data on the age categories of year-end accounts receivable and the percentage of those accounts that eventually proved uncollectible. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6, the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of Year 5 as follows:

Percentage of Uncollectible Accounts: Not Yet Past Due 1-30 Days Past Due Over 30 Days Past Due 46% 770 44% S 6% 16% -1694- 3% 42% 4% 14% 14% --- 42% 40% 41% 40% 10% 38% Year 1 2 3 4 5 6 Year 1 2 3 4 5 6 Year 1 2 3 4 5 6 Accounts Receivable by Age: End of Year 5 $128,000 $140,000 $84,000 $120,000 $100,000 $80,000 560,000 540,000 $20,000 $35,000 Not Yet Past Due 1-30 Days Past Due Over 30 Days Past Due Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? Estimated Uncollectible Accounts Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare th adjusting entry at the end of Year 5. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment to the allowance for uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit Determine the amount of net accounts receivable the company would report at the end of Year 5. Net Accounts Receivable