The Accounts Receivable balance for Pilgrim Company at December $31,2015,$ was $$30,000.$ During $2016,$ Pilgrim earned revenue of $$454,000$ on account and collected $$325,000$ on

account. Pilgrim wrote off $$6,000$ receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to $5\%$ of accounts receivable.

Read the requirements.

Requirement $2.$ Assume Pilgrim had an unadjusted $$2,100$ debit balance in Allowance for Bad Debts at December $31,2016.$ Journalize Pilgrim'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.$)$

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