Refer to the information in BE5–19, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $4,000 (debit). The company still estimates future uncollectible accounts to be 3% of credit sales for the year. What adjusting entry would Brinkley record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method?

Data from in BE5-19

At the end of the year, Brinkley Incorporated’s balance of Allowance for Uncollectible Accounts is $4,000 (credit) before adjustment. The company estimates future uncollectible accounts to be 3% of credit sales for the year. Credit sales for the year total $135,000. What is the adjusting entry Brinkley would record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method?