Uncollectible accounts Perfecto Company regularly sells on account and uses the Allowance method for writing off uncollectible accounts. a) This year, $77,000 of A/R have been discovered as uncollectible. Show how they were written off in one summary journal entry. Date Accounts Debits Credits (various) To record the write-off of uncollectible accounts as they become evident. b) This year, the ending A/R is $3,500,000. Perfecto finds that as a long-term average, 2.5% of their receivables turn out uncollectible. The remaining allowance, after the above write off, was $30,000. Book the increase of the allowance to the desired target value. Date Accounts Debits Credits Dec 31 To increase the allowance account to the new target balance