Exercise 7-07 At January 1, 2020, the credit balance of Riverbed Corp.'s Allowance for Doubtful Accounts was $402,500. During 2020, the bad debt expense entry was based on a percentage of net credit sales. Net sales for 2020 were $80 million, of which 90% were on account. Based on the information available at the time, the 2020 bad debt expense was estimated to be 0.75% of net credit sales. During 2020, uncollectible receivables amounting to $494,500 were written off against the allowance for doubtful accounts. The company has estimated that at December 31, 2020, based on a review of the aged accounts receivable, the allowance for doubtful accounts would be properly measured at $523,000. Prepare a schedule calculating the balance in Riverbed Corp.'s Allowance for Doubtful Accounts at December 31, 2020. 402500 Balance, January 1, 2020 Bad debt expense accrual 5400000 5802500 Uncollectible receivables written off Balance, December 31, 2020 before adjustment Allowance adjustment Balance, December 31, 2020 523000 Prepare any necessary journal entry at year end to adjust the allowance for doubtful accounts to the required balance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit