EquiFax Company estimates its uncollectible accounts based on an analysis of its receivables. On December 31, 2007, a junior accountant prepared the following aging schedule for the company's $88,000 in outstanding receivables.

Estimated

Uncollectible

Accounts

Age Interval Amount % Amount

Not due............................................................. $58,650 2% $1,173

130 days past due....................................... 13,220 4% 529

3160 days past due..................................... 8,930 20% 1,786

6190 days past due..................................... 4,000 30% 1,200

Over 90 days past due.................................. 3,200 50% 1,600

Total $88,000 $6,288

NOTE: The Allowance for Doubtful Accounts has no previous balance in 2007 as its the first year of its business operations.

1. Prepare the adjusting entry to record the company's estimate of uncollectible accounts on December 31, 2007.

2. After completing the adjusting entry, prepare the journal entry to write off the following uncollectible accounts on August 4, 2008:

T. Donaldson .................................................................... $ 700

J. Kyle ................................................................................ 450

D. Mize ............................................................................... 1,000

3. J. Kyle decided to pay his account on October 31, 2008 after you have written off his balance. Please provide the adjusting journal entries to record that transaction.