Question (4) Tell Services Co. uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following classification. Not yet due 1-30 days past due 31-60 days past due 61-90 days past due $111,000 $ 45,000 $ 19,500 $ 4,500 Over 90 days past due $ 7,500 $187,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above 5 age groups to be as follows: Group 1 (1 %), Group 2 (3 %), Group 3 (10 %), Group 4 (20%), and Group 5 (50%). The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $ 2,700. Instructions: 1. Compute the estimated amount of uncollectible accounts based on the above classification by age groups 2. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the required amount 3. Assume that after the adjustment was made, the company knew that an accounts receivable balance of $ 2,850 was worthless because of a bankruptcy of the customer, Ball Company. Prepare the journal entry required to write-off that balance 4. After 2 months Ball Company agreed to pay only $ 1,000 of the debt previously was worthless ($ 2,850). Prepare the journal entries needed to record this transaction