In$-$class activity $5$ March $6,2024$

Name

$($a$)$ PEECAN CORPORATION

Analysis of Changes in the

Allowance for Doubtful Accounts

For the Year Ended December $31,2025$

Balance at January $1,2025$ $$86,000$

Provision for doubtful accounts

Recovery in $2025$ of bad debts written off previously

Sub$-$total

Deduct write$-$offs for $2025$

Balance at December $31,2025,$ before change

in accounting estimate

Increase due to change in accounting estimate

during $2025$

Balance at December $31,2020,$ adjusted $($Schedule $1)$

Schedule $1$

Computation of Allowance for Doubtful Accounts

at December $31,2025$

Aging

Category

Balance

$\%$ Doubtful Accounts

Nov.$$Dec$.$ $$760,0001$ $ $7,600$

July$$Oct$.$

Jan.$$June

Prior to $1/1/25$

$$1,100,000$

$($b$)$ The journal entry to record the additional provision for bad debts as a result of the change in accounting estimate is as follows:

$($c$)$ Accounts Receivable, net of Allowance of Doubtful Accounts

$($d$)$ Present T$-$accounts for Accounts Receivable and Allowance for Doubtful Accounts for $2025.$