The Accounts Receivable balance for Gold Company at December $31,2015,$ was $$26,000.$ During $2016,$ Gold earned revenue of $$453,000$ on account and collected $$329,000$ on account. Gold wrote off $$6,000$ receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to $5\%$ of accounts receivable.

Read the requirements.

Requirement $1.$ Assume Gold had an unadjusted $$2,700$ credit balance in Allowance for Bad Debts at December $31,2016.$ Journalize Gold's December $31,2016,$ adjustment to record bad debts expense using the percent$-$of$-$receivables method. $($Record debits first, then, credits. Select the explanation on the last line of the journal entry table.$)$

Requirements

Assume Gold had an unadjusted $$2,700$ credit balance in Allowance for Bad Debts at December $31,2016.$ Journalize Gold's December $31,2016,$ adjustment to record bad debts expense using the percent$-$of$-$receivables method.

Assume Gold had an unadjusted $$1,600$ debit balance in Allowance for Bad Debts at December $31,2016.$ Journalize Gold's December $31,2016,$ adjustment to record bad debts expense using the percent$-$of$-$receivables method.