Selected unadjusted account balances at December $31,2023,$ are shown below for Demon Servicing

Account

Accounts receivable

Allowance for doubtful accounts

Sales $($all on credit$)$

Sales discounts

Debit

$$65,000$

$9,000$

Credit

$ $1,040$

$455,000$

$36$:$55$

Required:

o$.$ Demon estimates that $2\%$ of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on December $31,2020,$ to estimate uncollectible receivables.

View transaction list

Journal entry worksheet

$$

$1$

Record the estimate for uncollectible accounts.

Note: Enter debits before credits.

Date

General Journal

December $31,$

$2023$

Debit

Credit