PT - AB [LOE) ( Bad - Debt Reporting ! From inception of operations to December 31, 2017, Peccan Corporation provided for uncollectible accounts receivable under the allowance method : provisions were made monthly at 1% of credit sales ; bad debts written off were charged to the allowance account , recoveries of bad debts previously written off were credited to the allowance account , and no year - end adjustments to the allowance account were made . Itzzan's usual credit terms are net 30 days . The balance in Allowance for Doubtful Accounts was EGG, DID at January 1 , 2017. During 2017, credit sales totaled $6, 200, 0.010, interim provisions for doubtful accounts were made at 1% of credit sales , $17, and of bad debts were written off , and recoveries It accounts previously, written off amounted to }}, and . Icecan installed a computer system in November 2017, and an aging of accounts receivable was prepared for the first time as of December 31 , 2017. " Summary of the aging is as follows . Classification by Balance in Estimated ` Month of Sale* Each Category Uncollectible November - December 20717 19^ July_ Chetober* 201, 000 January - June* Prior to 1 /' 1 / 2017 S1 130, 0^` Based on the review of collectibility of the account balances in the" prior to I /' 1 / 2017' aging category, additional receivables totaling $ 30, 200 were written off as of Laccomber 31 , 2017 . The ```6 uncollectible Estimate applies to the remaining $.50, and in the category . Effective with the year ended December 31, 2017, Peccan adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year - End aging analysis of accounts receivable* Instructions lal Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 3 1, 2017 Show supporting computations in good form . I'Mlint . In computing the 12 /' 31 / 2017 allowance , subtract the $30.020 write-off! . Ibj Prepare the journal entry for the year-end adjustment to the Allowance for Doubtful Accounts balance as of December* 31, 2017