The following information relates to Shea Inc.'s Accounts Receivable for the 2014 fiscal year:
1. An aging schedule of the accounts receivable as at December 31, 2014, is as follows:

2. The Accounts Receivable control account has a debit balance of $372,400 on December 31, 2014.
3. Two entries were made in the Bad Debts 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, 2014, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.
4. Allowance for Doubtful Accounts is as follows for 2014:

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 2014, make the necessary correcting entries.

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Net Debit Balance $172,342 136,490 Age Under 60 days 61-90 days 91-120 days Over 120 days 96 to Be Applied after Writeoff Is Made 1% 3% 7% $4,200 definitely uncollectible, 20% of remainder is estimated uncollectible 39,924* 23,644 $372,400 Allowance for Doubtful Accounts 11/3 Uncollectible accounts written off 2,740 1/ enning balance 12/31 5% of $372,400 8,750 18,620