The accounting records of Sine.Com Ltd$.$ provided the following for $20$X$9$:

Balance in accounts receivable, $1$ January $20$X$9$ $ $90,000$

Balance in accounts receivable, $31$ December $20$X$9120,000$

Balance in allowance for doubtful accounts, $1$ January $20$X$93,000($cr$.)$

Accounts already written off as uncollectible during $20$X$95,500$

Page $451$

Six percent of the uncollected accounts receivable at year$-$end will be uncollectible.

Aging of the accounts receivable at the end of the period indicated that $80\%$ would incur a $2\%$ loss, while the remaining $20\%$ would incur a $10\%$ loss.

Required:

For each of the two alternatives listed above, give the following:

$20$X$9$ adjusting entry

Ending $20$X$9$ balance in the allowance account

An evaluation of the alternative

Explain which of the two alternatives you would recommend.