From inception of operations to December 31, 2020, Indigo 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. Indigo's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $126,100 (Cr.) at January 1, 2020. During 2020, credit sales totaled $9,015,500, the provision for doubtful accounts was determined to be $90,155, $90,155 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,470. Indigo installed a computer system in November 2020, and an aging of accounts receivable was prepared for the first time as of December 31, 2020. A summary of the aging is as follows. Classification by Month of Sale Balance in Each Category Estimated % Uncollectible November-December 2020 $1,250,500 2% July-October 689,900 9% January-June 439,900 27% Prior to 1/1/20 159,000 80% $2,539,300 Based on the review of collectibility of the account balances in the "prior to 1/1/20" aging category, additional receivables totaling $54,100 were written off as of December 31, 2020. The 80% uncollectible estimate applies to the remaining $104,900 in the category. Effective with the year ended December 31, 2020, Indigo adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2020. Show supporting computations in good form. (Hint: In computing the 12/31/20 allowance, subtract the $54,100 write-off.) INDIGO CORPORATION Analysis of Changes in the Allowance for Doubtful Accounts For the Year Ended December 31, 2020 Balance at January 1, 2020 $ 126100 Provision for doubtful accounts 90155 Recovery in 2020 of bad debts written off previously > 15470 231725 Less : Write-offs for 2020 Balance at December 31, 2020 before change in accounting estimate Increase due to change in accounting estimate during 2020 Balance at December 31, 2020 adjusted $ Computation of Allowance for Doubtful Accounts at December 31, 2020 Aging Category Doubtful Accounts Balance % Nov.-Dec. $ 1250500 2 % $ 25010 July-Oct. 689900 9 % 62091 Jan.- June 439900 27 % 118773 Prior to 1/1/20 104900 80 % 83920 CA $ 289794 Prepare the journal entry for the year-end adjustment to Allowance for Doubtful Accounts balance as of December 31, 2020. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense Allowance for Doubtful Accounts