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Foster Company uses the allowance method to account for uncollectible accounts receivable. At year-end, December 31, the unadjusted balance in the allowance for doubtful accounts

Foster Company uses the allowance method to account for uncollectible accounts receivable. At year-end, December 31, the unadjusted balance in the allowance for doubtful accounts was 450 credit. Based on past experience, it was estimated that 2.5% of the Accounts Receivable balance of 640,000 was uncollectible. Record the adjusting entry to estimate bad debts at December 31.

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