On 12/31/22 Kelly Corp estimates uncollectible accounts to be 10% of accounts receivable. The current balance in accounts receivable is $20,000 and the allowanxe for ubcollectible accounts has the following 2022 activity:

- 1/1/22 CR balance of $1,500

- Write offs during 2022 of $2,500

1. What adjusting entry will Kelly Corp record on 12/31/22?

2. What will Kelly Corp report as net accounts receivable on their 12/31/22 balance sheet?