Innovative Tech Incorporated $($ITI$)$ has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $$100,000$ and estimated that $1/4$ of $1$ percent of those sales would be uncollectible.

Required:

Prepare the November adjusting entry for bad debts.

Starting in December, ITI switched to using the aging method. At its December $31$ year$-$end, total Accounts Receivable is $$91,100,$ aged as follows: $(1)1$ to $30$ days old, $$76,000$; $(2)31$ to $90$ days old, $$11,000$; and $(3)$ more than $90$ days old, $$4,100.$ The average rate of uncollectibility for each age group is estimated to be $(1)11$ percent, $(2)22$ percent, and $(3)44$ percent, respectively. Prepare a schedule to estimate an appropriate year$-$end balance for the Allowance for Doubtful Accounts.

Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has a $$1,650$ credit balance at December $31.$ Prepare the December $31$ adjusting entry.

Show how the various accounts related to accounts receivable should be shown on the December $31$ balance sheet.