Problem II (10 points): The Bolton Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 4.5% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2017, and December 31, 2018, appear below: 12/31/2017 12/31/2018 Net Credit Sales $400,000 $500,000 Accounts Receivable 80,000 100,000 Allowance for Doubtful Accounts 3,600 Instructions: (a) Record the following events in 2018. Aug, 10 Determined that the account of Jane Duncan for $500 is uncollectible. Sept. 12 Determined that the account of Jeff Lynch for $3,000 is uncollectible. Oct. 10 Received a check for $500 as payment on account from Jane Duncan, whose account had previously been written off as uncollectible. (b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2018. (c) What is the balance of Allowance for Doubtful Accounts at December 31, 2018? Dr. Date Account Title (a)