Problem 7-5 Presented below information related to the Accounts Receivable accounts of Headland Inc. during the current year 2017. 1. An aging schedule of the accounts receivable as of December 31, 2017, as follows. % to Be Applied after Correction Is Made Age Net Debit Balance Under 60 days $170,200 2% 60-90 days 136,100 3% 91-120 days 39,200 5% $3,900 collety le; estimated remainder uncollectible Over 120 days 23,300 is 23% $368,800 *The $3,500 write-off of receivables is related to the 91-to-120 day category 2. The Accounts Receivable control account has a debit balance of $368,800 on December 31, 2017. 3. Two entries were made in the Bad Debt Expense account during the year: (1) a debit on December 31 for the amount credited to Allowance for Doubtful Accounts, and (2) a credit for $3,500 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 4. Allowance for Doubtful Accounts is as follows for 2017 Allowance for Doubtful Accounts 3,500 Jan. 1 Beginning balance 8,700 Nov. 3 Uncollectible accounts written off 5% of $368,800 18,440 Dec. 31 5. A credit balance exists in the Accounts Receivable (60-90 days) of $4,500, which represents an advance on a sales contract Assuming that the books have not been closed for 2017, make the necessary correcting entries. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter entered. Do not indent manually.) for the amounts. Credit account titles are automatically indented when the amount is Account Titles and Explanation Date Debit Credit Dec. 31, 2017 (To correct bad debt expense and write off accounts receivable) Dec. 31, 2017 (To reclassify credit balance n accounts receivable) Dec. 31, 2017 (To write off uncollectible accounts) (To write off uncollectible accounts) Dec. 31, 2017 (To reduce allowance for doubtful account balance) Open Show Work Click if you would like to Show Work for this