Problem 8-1A Indigo Corporation uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end Calculate the total estimated bad debts on the below information Number of Days Outstanding 61-90 Total 0-30 $321,000 31-60 $87,000 91-120 $22,000 Over 120 $12,000 Accounts Receivable $489,000 $47,000 % uncollectible 196 4% 5% 8% 11% Estimated bad debts d SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR PROBLEM Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,800 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS