Using the data in Exercise 8-11, assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $5,140 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31.

Exercise 8-11

Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

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Percent Uncollectible Age Class Balance $ 892,000 4% Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due 285,000 1 101,000 8 63,000 16 43,100 50 17,700 $1,401,800 80