The company's annual bad debt write-offs have been 2.7% of gross credit sales over the past 5 years. During the last fiscal year, this percentage increased to slightly less than 5.3%. The current Accounts Receivable balance is $1,200,000. The condition of this balance in terms of age and probability of collection is as follows. Allowance for Doubtful Accounts had a credit balance of $27,500 on June 1, 2019. Sheridan has provided for a monthly bad debt expense accrual during the current fiscal year based on the assumption that 5.3% of gross credit sales will be uncollectible. Total gross credit sales for the 2019-2020 fiscal year amounted to $2,500,000. Write-offs of bad accounts during the year totaled $112,000. I have done 1. Question which is: accounts rec. outstanding for each age category and total. I need to know these 2: 1- Compute the amount of the year-end adjustment necessary to bring Allowance for Doubtful Accounts to the balance indicated by the age analysis. 2- Prepare journal entry to adjust the accounting records. SHERIDAN COMPANY Accounts Receivable Collections May 31, 2020 Proportion of Total 60% 22% 9% 5% 21% 112% Age Categories not yet due less than 30 days past due 30 to 60 days past due 61 to 120 days past due 121 to 180 days past due over 180 days past due Probability of Collection 98% 96% 94% 91% 75% 30% Compute the amount of the year-end adjustment necessary to bring Allowance for Doubtful Accounts to the balance indicated by the age analysis. Additional allowance needed SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Prepare the necessary journal entry to adjust the accounting records. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles Bad Debt Expense Allowance for Doubtful Accounts Debit Credit