Q4 Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $134,000; estimated uncollectible = 10%. Accounts 145 days past due = $18,600; estimated uncollectible = 15%. Accounts more than 45 days past due = $7,400; estimated uncollectible = 20%.

Before recording any adjustments, Dhaliwal has a debit balance of $33,400 in its allowance for uncollectible accounts.

Required:

1.Estimate the appropriate 12/31/2024 balance for Dhaliwals allowance for uncollectible accounts.

2.What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?