The Garvey Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 6% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2016, and December 31, 2017, appear below:

Record the following events in 2017.
Aug. 10 Determined that the account of Kurt West for $900 is uncollectible.
Sept. 12 Determined that the account of Jill Lynch for $3,000 is uncollectible.
Oct. 10 Received a check for $300 as payment on account from Kurt West, whose account had previously been written off as uncollectible.
Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2017.
What is the balance of Allowance for Doubtful Accounts at December 31, 2017?

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12/31/2016 12/31/2017 Net Credit Sales $400,000 $500,000 Accounts Receivable 80,000 100,000 Allowance for Doubtful Accounts 4,000