Requirement 2. What would be the adjusting entry required on December 31 if the company used the percent-of-sales method with an estimate of uncollectibles equal to 7 percent of sales on account? (round to two decimals.)

x Problem 9-8B (alt1) Question Help 0 Holly Supplies uses the allowance method in accounting for uncollectible accounts with the estimate based on an aging of accounts receivable. The company had the following account balances on November 30, 2020: Accounts Receivable 1,940,000 59,000 Allowance for Doubtful Accounts (credit balance) The following transactions took place during the month of December 2020: (Click the icon to view the transactions.) Required Requirement 1. Record the transactions in the general journal. Transactions - Dec. 2 Austin Clemens, who owes $46,000, is unable to pay on time and has given a 20-day, 9-percent note in settlement of the account. 6 Received from Al Klassen the amount owed on a November 6 dishonoured note, plus extra interest for 30 days at 13 percent computed on the maturity value of the note ($15,300). This dishonoured note had been converted to an account receivable on November 6. 8 Received notice that a customer (Willie Rae) has filed for bankruptcy. Rae owes $39,000. The courts will confirm the amount recoverable at a later date. 11 Determined the account receivable for Sara Keppel ($8,200) was uncollectible and wrote it off. 18 Received a cheque from the courts in the amount of $26,500 as final settlement of Rae's account. 22 Clemens paid the note received on December 2. 26 Determined the account receivable for Davey Price ($9,200) was uncollectible and wrote it off. 31 Sales for the month totalled $747,000 (of which 85 percent were on account) and collections on account totalled $520,000. 31 Holly Supplies did an aging of accounts receivable that indicated that $66,000 is expected to be uncollectible. The company recorded the appropriate adjustment