Crow Companys Accounts Receivable balance is $120,000 as of December 31, 2019. At the end of the period 4% of the accounts receivable is estimated to be uncollectible. Company uses percentage of receivables method for its doubtful receivables.

REQUIRED: Compute the uncollectible accounts expense (bad debts expense) for 2019. Record the necessary adjusting entry (journal entry) as of December 31, 2019 for uncollectible receivables and show their effects on the financial statements (Income Statement for 2019 and Balance sheet as of December 31, 2019).