. E8-8 Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit Sales and Aging of Accounts Receivable Methods [LO2] Innovations Corp (C) uses the percentage of credit sales method to estimate bad debts each month and then uses the aging method at year-end. During November 2014, IC sold services on account for $96,000 and estimated that of one percent of those sales would be uncollectable. At its December 31 year-end, total Accounts Receivable is $91,000, aged as follows: (1) 1 to 30 days old, $76,000; (2) 31 to 90 days old, $10,700; and (3) more than 90 days old, $4,300. Experience has shown that for each age group. the average rate of uncollectability is (1) 1 percent, (2) 15 percent, and (3) 40 percent, respectively. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,720 credit balance at December 31, 2014 5 Required: 1. Prepare the November 2014 adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet View transaction list Journal entry worksheet