The following information relates to Shea Inc.'s accounts receivable for the 2017 fiscal year:
1. An aging schedule of the accounts receivable as at December 31, 2017, is as follows:

*The $2,740 write off of receivables (see item 4 below) is related to the 91-120-day category.
2. The Accounts Receivable control account has a debit balance of $372,400 on December 31, 2017.
3. Two entries were made in the Bad Debt Expense account during the year:
(1) A debit on December 31 for the amount credited to Allowance for Doubtful Accounts, and
(2) A credit for $2,740 on November 3, 2017, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.
4. Allowance for Doubtful Accounts is as follows for 2017:

5. There is a credit balance in Accounts Receivable (61-90 days) of $4,840, which represents an advance on a sales contract.
Instructions
Assuming that the books have not been closed for 2017, make the necessary correcting entries.

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%to Be Applied after Write off Is Made Net Debit Age Under 60 days 61-90 days 91-120 days Over 120 days Balance $172,342 136,490 39,924* 23,644 $372,400 1% 3% 7% $4,200 definitely uncollectible, 20% of remainder is estimated uncollectible Allowance for Doubtful Accounts 11/3 Uncollectible accounts written off 2,7401/1Beginning balance 12:31 5% of $372,400 8,750 18,620