Brief Exercise $5-23($Algo$)$ Determine financial statement

effects of allowing for uncollectible accounts $($LO$5-3)$

At the end of the first year of operations, Mayberry Advertising had accounts

receivable of $$25,500.$ Management of the company estimates that $10\%$ of

the accounts will not be collected.

Determine the financial statement effects of the adjusting entry to allow for

uncollectible accounts. $($Amounts to be deducted should be entered with

minus sign.$)$