BioWare's year$-$end unadjusted trial balance shows accounts receivable of $$29,000$ and sales of $$400,000.$ Uncollectibles are

estimated to be $2\%$ of sales.

Prepare the December $31$ year$-$end adjusting entry for uncollectibles using the percent of sales method.

Journal entry worksheet

Record the estimate of uncollectibles.

Note: Enter debits before credits.