XYZ Company uses the allowance method for accounts receivable. The allowance account has a $3,000 debit balance prior to adjustment. Management uses the aging- of-accounts-receivable method to estimate bad debts. The aging of accounts receivable yields these data: Age of accounts 0-30 days 31-60 days 61-90 days 90+ days Percentage Estimated to be uncollectible 1% 3% 10% 75% Accounts receivable balance $85,000 $150,000 $15,000 $25,000 Prepare the journal entry required to update the allowance account. (Date: December 31, 2018) ( /4) DATE ACCOUNTS & DESCRIPTION DEBIT CREDIT Show how XYZ Company should report accounts receivable on its balance sheet.( /2)