Innovative Tech Inc. (ITI) uses the percentage of credit sales method to estimate bad debts each month and then uses the aging method at year-end. During November, ITI sold services on account for $110,000 and estimated that 14 of one percent of those sales would be uncollectible. At its December 31 year-end, total Accounts Receivable is $96,500, aged as follows: (1) 1-30 days old. $80.000: (2) 31-90 days old, $12.000; and (3) more than 90 days old, $4,500. Experience has shown that for each age group, the average rate of uncollectibility is (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,850 credit balance at December 31. Required: 1. Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 90 12,000 T otal $ 188,500 Accounts Receivable $ Estimated Uncollectible (% Estimated Uncollectibles Orconecte $ 12% 24% 48% 11.580l $ 11 9,200 $ 5,760 $ 36,540 ($) 3. Prepare the December 31 adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for bad debts as of December 31. Note: Enter debits before credits. Credit Date General Journal Dec 31 Bad Debt Expense Allowance for Doubtful Accounts Debit 30,780 3,780 Record entry Clear entry View general journal 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Innovative Tech Inc. (ITI) Balance Sheet (partial) At December 31 Accounts Receivable 188,500 36,540 Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 151,900