Instructions From inception of operations to December 31, 2015, Harris Corporation provided for uncollectible accounts receivable under the allowance method. Provisions were made monthly at 2% of credit sales; 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. Harris's usual credit terms are net 30 days. The balance in the Allowance for Doubtful Accounts was $130,000 at January 1, 2016. During 2016, credit sales totaled $9,000,000, interim provisions for doubtful accounts were made at 29of credit sales, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Harris upgraded its computer facility in November 2016, and an aging of accounts receivable was prepared for the first time as of December 31, 2016. A summary of the aging is as follows: Estimated % Uncollectible Classification by Month of Sale Nov.-Dec. 2016 July-Oct. Balance in Each Category $1,140,000 600,000 400,000 130,000 S2,270,000 Jan-June Prior to 1/1/2016 Based on the review of collectibility of the account balances in the prior to 1/1/2016" aging category, additional receivables totaling $60,000 were written off as of December 31, 2016. Effective with the year ended December 31, 2016, Harris adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. Required: 1. Prepare a schedule analyzing the changes in the allowance for doubtful accounts for the year ended December 31, 2016. Show supporting computations in good form. 2. Prepare the journal entry for the yoar ond adjustment to the Allowance for Doubtful Accounts balance as of December 31, 2016. Schedule Prepare a schedule analyzing the changes in the allowance for doubtful accounts for the year ended December 31, 2016. Additional Instructions HARRIS CORPORATION Score: 39754 Analysis of Changes in the Allowance for Doubtful Accounts For the Year Ended December 31, 2016 Balance at January 1, 2016 Add: Provision for doubtful accounts $130,000.00 180,000.00 15,000.00 $325,000.00 3 Add: Recovery in 2016 of bad debts written off previously 5 Deduct: Write-offs for 2016 1,800.00 Balance at December 31, 2016, before change in accounting estimate Increase due to change in accounting estimate during 2016 Balance at December 31, 2016 Points: 8.67 / 12 Instructions From inception of operations to December 31, 2015, Harris Corporation provided for uncollectible accounts receivable under the allowance method. Provisions were made monthly at 2% of credit sales; 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. Harris's usual credit terms are net 30 days. The balance in the Allowance for Doubtful Accounts was $130,000 at January 1, 2016. During 2016, credit sales totaled $9,000,000, interim provisions for doubtful accounts were made at 29of credit sales, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Harris upgraded its computer facility in November 2016, and an aging of accounts receivable was prepared for the first time as of December 31, 2016. A summary of the aging is as follows: Estimated % Uncollectible Classification by Month of Sale Nov.-Dec. 2016 July-Oct. Balance in Each Category $1,140,000 600,000 400,000 130,000 S2,270,000 Jan-June Prior to 1/1/2016 Based on the review of collectibility of the account balances in the prior to 1/1/2016" aging category, additional receivables totaling $60,000 were written off as of December 31, 2016. Effective with the year ended December 31, 2016, Harris adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. Required: 1. Prepare a schedule analyzing the changes in the allowance for doubtful accounts for the year ended December 31, 2016. Show supporting computations in good form. 2. Prepare the journal entry for the yoar ond adjustment to the Allowance for Doubtful Accounts balance as of December 31, 2016. Schedule Prepare a schedule analyzing the changes in the allowance for doubtful accounts for the year ended December 31, 2016. Additional Instructions HARRIS CORPORATION Score: 39754 Analysis of Changes in the Allowance for Doubtful Accounts For the Year Ended December 31, 2016 Balance at January 1, 2016 Add: Provision for doubtful accounts $130,000.00 180,000.00 15,000.00 $325,000.00 3 Add: Recovery in 2016 of bad debts written off previously 5 Deduct: Write-offs for 2016 1,800.00 Balance at December 31, 2016, before change in accounting estimate Increase due to change in accounting estimate during 2016 Balance at December 31, 2016 Points: 8.67 / 12