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Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit Sales and Aging of Accounts Receivable Methods [LO 8-2] Innovative Tech Inc. (ITI) uses the percentage of credit sales method to estimate bad debts each month and then uses the aging method atyear-end. During November 2013, ITI sold services on account for $160,000 and estimated that1/4 of one percent of those sales would be uncollectible. At its December 31 year-end, total Accounts Receivable is S80.100. aged as follows: (1) 1-30 days old. $66,000; (2) 31-90 days old, 511,000; and (3) more than 90 days old, S3.100. Experience has shown that for each age group, the average rate of uncollectibility is (1) 11 percent, (2) 22 percent, and (3) 44 percent, respectively. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,150 credit balance at December 31,2013. Prepare the November 2013 adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. Prepare the December 31, 2013, adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Prepare the December 31, 2013, adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit Sales and Aging of Accounts Receivable Methods [LO 8-2] Innovative Tech Inc. (ITI) uses the percentage of credit sales method to estimate bad debts each month and then uses the aging method atyear-end. During November 2013, ITI sold services on account for $160,000 and estimated that1/4 of one percent of those sales would be uncollectible. At its December 31 year-end, total Accounts Receivable is S80.100. aged as follows: (1) 1-30 days old. $66,000; (2) 31-90 days old, 511,000; and (3) more than 90 days old, S3.100. Experience has shown that for each age group, the average rate of uncollectibility is (1) 11 percent, (2) 22 percent, and (3) 44 percent, respectively. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,150 credit balance at December 31,2013. Prepare the November 2013 adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. Prepare the December 31, 2013, adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Prepare the December 31, 2013, adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)