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XY merchandising uses the allowance method to account for uncollectible accounts. They have a debit balance of $150,000 in the account receivable account and a

XY merchandising uses the allowance method to account for uncollectible accounts. They have a debit balance of $150,000 in the account receivable account and a $500 credit balance in the allowance account prior to making an estimate at the end of 2009. they estimate that 2% of the receivable will not be collected. Prepare the adjusting entry XY merchandising should make on 12/31/2018.

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