Aging Method

On January $1,$ Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts:

Accounts Receivable $$235,000$

Allowance for Doubtful

Accounts $($a credit balance$)37,600$

During the year, Hungryman had $$1,080,000$ of credit sales, collected $$550,800$ of accounts receivable, and wrote off $$34,600$ of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $$45,900$ will be uncollectible.

Required:

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$1.$ Calculate Hungryman$$s preadjustment balance in accounts receivable on December $31.$

$729,600$

$2.$ Calculate Hungryman$$s preadjustment balance in allowance for doubtful accounts on December $31.$

$3,000$

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$1.$ and $2.$ Using T$-$accounts, start with the balance at the beginning of the year and make the necessary debits and$/$or credits for the transactions that occurred during the year.

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$3.$ Prepare the necessary adjusting entry for the year. If an amount box does not require an entry, leave it blank.