Sheridan Tools uses the allowance method to account for uncollectible accounts. May 20 The account of Barack Obama for $1,142 was deemed to be uncollectible and is written off as a bad debt. Aug. 7 Received a check for $276 from Barack Obama whose account had previously been written off as uncollectible. Dec. 31 Use the following information for the year-end adjusting entry: The balances of Accounts Receivable and Allowance for Doubtful Accounts at year- end are $108,800 and $108, respectively, both with debit balances. It is estimated that bad debts will be 1.5% of accounts receivable. Prepare the appropriate journal entries to record the above transactions during 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)