he credit manager of Uris Fuel has gathered the following information about the company$$s accounts receivable and credit losses during the current year:

Net credit sales for the year $ $8,000,000$

Accounts receivable at year$-$end $1,750,000$

Uncollectible accounts receivable:

Actually written off during the year $ $96,000$

Estimated portion of year$-$end receivables expected to prove uncollectible $($per aging schedule$)84,000180,000$

Required:

Prepare one journal entry summarizing the recognition of uncollectible accounts expense for the entire year under each of the following independent assumptions:

Uncollectible accounts expense is estimated at an amount equal to $2\mathrm{.}5$ percent of net credit sales.

Uncollectible accounts expense is recognized by adjusting the balance in the Allowance for Doubtful Accounts to the amount indicated in the year$-$end aging schedule. The balance in the allowance account at the beginning of the current year was a $$25,000$ credit. $($Consider the effect of the write$-$offs during the year on the balance in the Allowance for Doubtful Accounts.$)$

The company uses the direct write$-$off method of accounting for uncollectible accounts.