Exercise $8-12$ Estimating bad debt expense$-$percentage of receivables $LO3$

Selected unadjusted account balances at December $31,2023,$ are shown below for Demron Servicing.

Required:

a$.$ Assume that Demron estimates uncollectible accounts as $3\mathrm{.}5\%$ of receivables. Prepare the adjusting entry required on December $31,$

$2023,$ to estimate uncollectible receivables.