Breaker Co The Credit Balance in the Allowance for Uncollectible Accounts Is

Essay

Breaker Co.'s accounts receivable show the following balances by age:
$\begin{array}{ll}\text { Age of Recenable }&\text { Balance }\\0-30 \text { days } & \$ 600,000 \\31-60 \text { days } & 175,000 \\61-120 \text { days } & 70,000 \\\text { more than } 120 \text { days } & 10,000\end{array}$ The credit balance in the allowance for uncollectible accounts is $2,500.Breaker Co.uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 0.7%; 31-60 days, 1.2%; 61-120 days, 11%; and more than 120 days, 65%.
Required:
Prepare the adjusting journal entry.