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111 73% 1 1 :20 AM (Learning Objective 4: Apply GAAP for uncollectible receivables) The September 30, 2017, records of First Data Communications include these accounts Accounts Receivabk Allowance for Doubtful Accounts $243,000 (8,200) During the year, First Data Communications estimates doubtful-account expense at 1% of credit sales. At year- end (December 31), the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the following aging schedule Age of Accounts Accounts Receivable $231,000 Estimated percent uncollectible 1-30 Days $134,000 0.2% 31-60 Days 61-90 Days Over 90 Days $45,000 2% $16,000 15% 536,000 3.5% During the last quarter of 2017, the company completed the following selected transactions Nov 30 Wrote off as uncollectible the $1,600 account receivable from Black Carpets and the $600 account receivable from Rare Antiques. Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables. Dec 31 Requirements 1. Record the transactions for the last quarter of 2017 in the journal. Explanations are not required 2. Prepare a T-account for Allowance for Doubtful Accounts with the appropriate beginning balance. Post the entries from requirement 1 to that account 3. Show how First Data Communications will report its accounts receivable in a comparative balance sheet for 2016 and 2017. Use the three-line reporting format. At December 31, 2016, the company's Accounts Receivable balance was $215,000, and the Allowance for Doubtful Accounts stood at $4,500 Step-by-step solution