QUESTION 2: Accounts Receivable Allowance for Uncollectible Accounts 100,000 2,000 The company uses the "aging method" for determining its Doubtful accounts. The adjustment is made only once a year at the end of December. The aging analysis is as follows: Aging Category Not yet due 30 days past due 60 days past due Over 90 days past due Amount $40,000 $30,000 $20,000 $10,000 Estimated Doubtful % 2% 3% 4% 5% Required: a) Prepare the adjustment in journal entry format. b) Show the balances of the accounts that will be reported in the balance sheet. QUESTION 3: Accounts receivable Allowance for Uncollectible Accounts Sales Sales returns and allowances Sales discounts 70,000 2,000 200,000 3,000 7,000 The company uses the allowance method for bad debts and calculates its bad debt expense (or uncollectible accounts expense) using the percentage of net sales method. Percentage to be used for the year is 2%. Required: a) Prepare the adjustment in journal entry format. b) Show the balances of the accounts that will be reported in the balance sheet