Question No 4: Moonglow, a Broadway Publicity firm, 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. Over 90 days past due. Total $400,000 150,000 60,000 20,000 50,000 $680.000 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group 1, 1%; Group 2,4%; Group 3, 10%; Group 4, 25%; and Group 5, 40% The Allowance for Doubtful Accounts before adjustments at December 31 showed a credit balance of $6,600. Instructions a. Compute the estimated amount of uncollectible accounts based on the above classification by age groups. b. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount. Show T- account calculation. C. Assume that on January 15 of the following year, Moonglow learned that an account receivable that had originated on September 1 in the amount of $2,400 was worthless because of the bankruptcy of the client, May Flowers. Prepare the journal entry required on January 15 to write off this account.