Using the data in Exercise 8-11, assume that the allowance for doubtful accounts for Imperial Bikes Co. had a debit balance of $1,400 as of December 31, 2012. Journalize the adjusting entry for uncollectible accounts as of December 31, 2012.

Data from Exercise 8-11:

Imperial Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company€™s accounts receivable on December 31, 2012, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

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Percent Age Interval Balance Uncollectible 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 $600,000 120,000 60,000 3 45,000 10 26,000 40 24,000 $875,000 75