With the downturn of the economy, Crying Towels, Inc., the official supplier of crying towels to 401k fund managers, anticipates an increase in uncollectible accounts. Prepare the appropriate journal entries in good form for Crying Towels, Inc. The company uses the allowance method for recording bad debts. On December 31,2013 , Crying Towels, Inc. estimated that 3.5% of its net sales of $1,500,000 will become uncollectible. On May 11, 2014, Crying Towels determined that Joe Biden's account ($5,000) was uncollectible. On June 12 , Biden paid the amount previously written off