Question 4 At January 1, 2020, Lincoln Inc. had a credit balance in its Allowance for Doubtful Accounts (AFDA) of $10,000. During 2020, Lincoln estimated bad debt expense by taking a percentage of net sales on account. Net sales for 2020 were $500,000 and 80% of these sales were made on account. Bad debt expense was estimated to be equal to 1% of net sales on account. During the year, receivables amounting to $20,000 were written off against AFDA. At December 31, 2020, Lincoln reviewed its aged accounts receivable and estimated that the AFDA at period end should be $35,000. Instructions: Prepare a schedule calculating the balance in Lincoln's AFDA account at December 31, 2020. Prepare any journal entry needed at year end to adjust AFDA to the required balance. Round amounts to the nearest dollar. Show ALL calculations for full marks