P5-67A. (Learning Objective 4: Using the aging approach for uncollectibles) The September 30, 20X7, records of Effective Communications include these accounts: Accounts Receivable....... Allowance for Doubtful Accounts. $270,000 (9,100) At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 20X7, the company completed the following selected transactions: Nov. 30 Wrote off as uncollectible the $1,100 account receivable from Black Carpets and the $500 account receivable from Old Timer Antiques. Dec. 31 Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables, which follows. Age of Accounts Accounts Receivable 1-30 Days 31-60 Days $235,000 Estimated percent uncollectible $150,000 0.2% $35,000 61-90 Days $20,000 Over 90 Days $30,000 2.0% 8.0% 40.0% Requirements 1. Record the transactions in the journal. Explanations are not required. 2. Prepare a T-account for Allowance for Doubtful Accounts and post to that account. 3. Show how Effective Communications will report its accounts receivable on its Balance Sheet at December 31, 20X7