Teal Mountain Inc. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. (a) Your answer is correct. Calculate the total estimated bad debts based on the information below. Total 0-30 31-60 Accounts receivable $478,000 $325,000 $85,000 % uncollectible 1% 4% Estimated bad debts $ 11310 $ 3250 $ 3400 Calculate the total estimated bad debts based on the information below. 31-60 Number of Days Outstanding 61-90 $39,000 91-120 Over 120 $85,000 $16,000 $13,000 4% 5% 8% 11% 3400 $ 1950 $ 1280 $ 1430 Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,000 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit