Innovative Tech Incorporated $($IT$)$ has been using the percentage of credlt sales method to estimate bad debts. During November, ITI

sold services on account for $$160,000$ and estimated that $\frac{3}{4}$ of $1$ percent of those sales would be uncollectlale.

Required:

Prepare the November adjusting entry for bod debts.

Starting in December, ITI switched to using the aging method. At its December $31$ year$-$end, total Accounts Receivable is $$80,000,$

aged as follows: $($T$)1$ to $30$ days ald, $$05,000$; $(2)31$ to $90$ days old, $$12,000$; and $(3)$ more than $90$ days ald, $$3,000.$ The averoge

rate of uncollectibility for each age group is estimated to be $(1)12$ percent, $(2)24$ percent, and $(3)48$ percent, respectively. Prepare a

schedule to estimate an appropriate year$-$end balance for the Allawance for Doubtful Accounts.

Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has a $$1,100$ credit bolance at December $31.$

Prepare the December $31$ adjusting entry.

Show how the various accounts related to accounts recelvable should be shown on the December $31$ balance sheet.

Complete this question by entering your answers in the tabs below.

Prepare the Nowember adjusting entry for bad debts. $($If no entry is required for a transactionyevent, select $"$No Journal Enkry Required"

in the first account field.

Journal entry worksheet

Record the adjusting entry for bad debts as of November $30.$

Nate: Enter debts balere credits.