P7-5 (LO3) (Bad-Debt Reporting) Presented below is information related to the Accounts Receivable accounts of Gulistan Inc. during the current year 2017, 1. An aging schedule of the accounts receivable as of December 31, 2017, is as follows % to Be Applied after Correction Is Made 1% 3% 6% $3,700 definitely uncollectible estimated remainder uncollectible is 25% Net Debit Balance Under 60 days 60-90 days 91-120 days Over 120 days $172,342 136,490 9,924 23,644 $372,400 The $3,240 write-off of receivables is related to the 91-to-120 day category The Accounts Receivable control account has a debit balance of $372,400 on December 31, 2017 2. 3. Two entries were made in the Bad Debt Expense account during the year: (1) a debit on December 31 for the amount cred- ited to Allowance for Doubtful Accounts, and (2) a credit for $3,240 on November 3, 2017, and a debit to Allowance for Doubtful Accounts because of a bankruptcy 4. Allowance for Doubtful Accounts is as follows for 2017 Allowance for Doubtful Accounts Uncollectible accounts3240 Dec. 31 written of Nov. 3 an. 1 Beginning balance 8,750 18,620 5. A credit balance exists in Accounts Receivable (60-90 days) of $4,840, which represents an advance on a sales contract. Instructions Assuming that the books have not been closed for 2017, make the necessary correcting entries