Problem 11: The Gadzooks Chip Company offers credit terms to its customers. At the end of 2013, accounts receivable totaled S2,223,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of S68,000 at the beginning of 2013 and $46,200 in receivables was written off during the year as uncollectible. No previously written off receivables were collected. The company estimates bad debts by applying a percentage of 3% to accounts receivable at the end of the year. . Propaurejournal cnty to record he wr f of reetvabes 2. Prpare jourmal cnuris to reandthe ear nd rnad et apense. Show your computation owwcomts 0er and balanse se 4. The company made $3,500,000 net credit sales during the year. If the company had used income statement approach to charge 1% of net credit sales to bad debt expense, how would it be recorded in journal entry? Would it have increased or decreased the amount set aside as allowance for uncollectible accounts