Question $3$

On December $31,2011,$ Colonial Corporation had the following account balances

related to credit sales and receivables prior to recording adjusting entries:

Requirements:

Present the necessary year$-$end adjusting entry related to uncollectible accounts for

each of the following independent assumptions:

An aging of accounts receivable is completed. It is estimated that $$5,000$ of the

receivables outstanding at year$-$end will be uncollectible.

Assume the same information presented in part $1.$ Except that prior to

adjustment, the allowance for doubtful accounts had a debit balance of $$200$

rather than a credit balance of $$200.$