The Accounts Receivable balance for Gold, Inc. at December $31,2024,$ was $$30,000.$ During $2025,$ Gold, Inc. earned revenue of $$461,000$ on account and collected $$327,000$ on account. Gol $$5,700$ receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to $6\%$ of accounts receivable.

Read the requirements

Requirement $1.$ Assume Gold, Inc. had an unadjusted $$2,000$ credit balance in Allowance for Bad Debts at December $31,2025.$ Journalize Gold, Inc.$\text{'}$s December $31,2025,$ adjustment to reco expense using the percent$-$of$-$receivables method. $($Record debits first, then credits. Select the explanation on the last line of the journal entry table.$)$

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[$Dec$.31,,,],[,,],[($:$[1],[4]$