Test 8 Aging A/R Name: Student no.: 138) On December 31, 2010, Rainbow Appliances has $275,000 in accounts receivable and an allowance account with a debit balance of $320. Current period net credit sales were $780,000, and cash sales were $68,000 a) Rainbow Appliances performs an aging schedule, and the results are summarized below, along with the appropriate percentages that Rainbow applies to the categories shown. Percentage Amount Uncollectible Days Outstanding Not yet due 31-60 days past due 61-90 days past due 91-120 days past due Over 120 days past due $150,000 50,000 40,000 25,000 10,000 1% 5% 10% 25% 50% Assuming Rainbow uses the aging A/R approach (Balance Sheet Approach) of accounting for uncollectible accounts, prepare the adjusting entry required at the end of the accounting period