On December 31, 2021, Noah Oxendine Freight Co. reported an allowance for doubtful accounts of $86,800. During 2021, Oxendine wrote off an account from Meagan Pennie & Co. in the amount of $67,000.

At December 31, 2021, an analysis of the accounts receivable aging schedule was as follows:

RECEIVABLE AGING
Less than 30 days	$ 1,500,000
31 to 60 days	400,000
61 to 90 days	250,000
91 to 120 days	85,000
Over 120 days	60,000
	$ 2,295,000

Historically, Gagnon allows for allowances by aging category of the following:

RECEIVABLE AGING ALLOWANCE PERCENTAGES
Less than 30 days	0.25%
31 to 60 days	3.70%
61 to 90 days	18.00%
91 to 120 days	25.00%
Over 120 days	50.00%

Required:

1. Prepare all journal entries resulting from the information given above including the writeoff of the receivable and any adjustments required for 2021.

Date	DR/CR	Account	Debit	Credit

2. Demonstrate the activity in the allowance account by preparing a T account of the activity described above during the year.

ALLOW FOR DOUBTFUL ACCTS
	DR		CR