P7.5B (LO 5) (Bad-Debt Reporting) Presented below is information related to the Accounts Receivable accounts of Tans Inc. during the current year 2020. 1. An aging schedule of the accounts receivable as of December 31, 2020, is as follows: Age Under 60 days 60-90 days 91-120 days Over 120 days Net Debit Balance $268,060 91,860 % to Be Applied after Correction Is Made 2% 4% 42,983* 8% 63,847 $466,750 $10,600 definitely uncollectible; estimated remainder uncollectible is 40% "The $4,600 write-off of receivables is related to the 91-to-120 day category. 2. The Accounts Receivable control account has a debit balance of $466,750 on December 31, 2020. 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 $4,600 on November 3, 2020, and a debit to Allowance for Doubtful Accounts because of a bankruptcy. 4. Allowance for Doubtful Accounts is as follows for 2020: Nov. 3 Uncollectible accounts written off 4,600 Allowance for Doubtful Accounts Jan. 1 Dec. 31 Beginning balance 4% of $466,750 11,605 18,670 5. A credit balance exists in the Accounts Receivable (60-90 days) of $12,500, which represents an advance on a sales contract. Instructions Assuming that the books have not been closed for 2020, make the necessary correcting entries.