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Natural Hair company reported credit sales of $ 5,000,000 during 2007. Assume that instead of using the analysis of receivables method of estimating uncollectible accounts,

Natural Hair company reported credit sales of $ 5,000,000 during 2007. Assume that instead of using the analysis of receivables method of estimating uncollectible accounts, Wigs Plus company uses the percent of sales method and estimates that 1.25% of sales will be uncollectible. Illustrat the effect on the accounts and financial statements of the adjustment for uncollectible accounts using the percent of sales method

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