Movie Set Up Company's trial balance before adjustment included the following information:

	Debit	Credit
Accounts receivable	$1,245,000
Allowance for doubtful accounts	18,245
Sales		$10,462,000

Required:

	Prepare journal entries on December 31 assuming that the estimate of uncollectibles is determined by taking:
1.	3.5% of gross accounts receivable.
2.	0.5% of net sales.