Company X has a credit balance of $3,500 in Allowance for Uncollectible Accounts. (This is the balance before adjustment.)

* The estimated bad debts expense under the percentage-of-sales basis (Income Statement approach) is $4,100. Prepare the adjusting entry.

* The total estimated uncollectible under the percentage-of-receivables basis (Balance Sheet approach) is $5,800 upon the aging analysis. This amount is the desired new balance in Allowance for Uncollectible Accounts. The difference between the current balance and the desired new balance is the amount to be adjusted.

What is the ending balance in Allowance for Uncollectible Accounts after making the year-end adjusting entry in each case, respectively?

a) % of Sales method:

b) % of Receivable Aging method: