On December 31st 2021, prior to adjusting entries, Lobs Inc.s accounts receivable has a balance of 340,000. Lobs Inc. uses the balance sheet approach and estimates that 10% of all outstanding AR will be uncollectible. The balance in the allowance for doubtful accounts is $17,000 prior to adjusting entries.

Provide the relevant adjusting entries on Dec 31st 2021. (6 points)

On Jan 3rd 2022, Lob Inc writes off $10,000 of their AR as bad debt. Provide the relevant transactional journal entries. (4 points)