Problem Three: A company reports the following amounts at the end of Year 1 (before adjustment). Credit Sales for Year 1 Accounts Receivable, December 31, Year 1 Allowance for Uncollectible Accounts, December 31, Year 1 $254,000 49,000 1,100 (Credit) 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 12% of receivables will not be collected. L SE R E NI CF Account CR Date A DR 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. The company estimates 3% of credit sales will not be collected. Date A L SE R E NI CF Account DR CR