Instructions

Uncollectible Accounts$-$Percentage of Receivables

Tammie's Toyota Sales and Service estimates the amount of uncollectible accounts using the percentage of receivables method. Based or aging the accounts, it is estimated that $$4,950$ will not be collected. Record the end$-$of$-$period adjusting entry on December $31,$ in gener journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:

Allowance for Doubtful Accounts has a credit balance of $$690.$ If an amount box does not require an entry, leave it blank.

Allowance for Doubtful Accounts has a debit balance of $$275.$ If an amount box does not require an entry, leave it blank.