S-F:8-7 Applying the allowance method (percent-of-receivables) to account for uncollectibles (Learning Objective 3) The Accounts Receivable balance for Lake, Inc. at December 31, 2023, was $20,000. During 2024, Lake earned revenue of $454,000 on account and collected $325,000 on account. Lake wrote off $5,600 receivables as uncollectible. Industry experience suggests that uncollectible accounts. will amount to 5% of accounts receivable. Requirements 1. Assume Lake had an unadjusted $2,700 credit balance in Allowance for Bad Debts at December 31. 2024. Journalize Lake's December 31. 2024, adjustment to record bad debts expense using the percent-ofreceivables method. 2. Assume Lake had an unadjusted $2,400 debit balance in Allowance for Bad Debts at December 31, 2024. Jourtalize Lake's December 31. 2024, adjustment to record bad debts expense using the percent-ofreceivables method