QUESTION 5 Lewandowski Co.'s accounts receivable show the following balances by nyo: Age of Receivable Balance 0-30 days $800,000 31-60 days 175,000 61-120 days 70,000 More than 120 days 10,000 Before the adjusting journal entry, the Allowance for Uncollectibles has a credit balance of $8.500. Lewandowski Co. uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 0.7%; 31-60 days, 1.2%; 61-120 days, 11%, and more than 120 days, 65%. The adjusting journal entry: Reduces taxable income by $8,500 Reduces net realizable value of receivables by $20,500 Reduces taxable income by $20,500 Reduces net realizable value of receivables by $12,000