From inception of operations to December 31, 2017, Blue Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Blues usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $132,300 at January 1, 2017. During 2017, credit sales totaled $9,097,900, the provision for doubtful accounts was determined to be $181,958, $90,979 of bad debts were written off, and recoveries of accounts previously written off amounted to $19,730. Blue installed a computer system in November 2017, and an aging of accounts receivable was prepared for the first time as of December 31, 2017. A summary of the aging is as follows.

Classification by Month of Sale Balance in Each Category Estimated % Uncollectible

NovemberDecember 2017 $1,226,200 2%

JulyOctober 665,500 10%

JanuaryJune 422,000 24%

Prior to 1/1/17 165,000 74%

Total $2,478,700

Based on the review of collectibility of the account balances in the prior to 1/1/17 aging category, additional receivables totaling $63,300 were written off as of December 31, 2017. The 74% uncollectible estimate applies to the remaining $101,700 in the category. Effective with the year ended December 31, 2017, Blue adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable.

(A) Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2017. Show supporting computations in good form. (Hint: In computing the 12/31/17 allowance, subtract the $63,300 write-off.)

(B) Prepare the journal entry for the year-end adjustment to the Allowance for Doubtful Accounts balance as of December 31, 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)