Eaton Company has a credit balance of $3,500 in Allowance for Uncollectible Accounts.   a.

The estimated bad debts expense under the percentage-of-sales basis (Income Statement approach) is $4,100. Prepare the adjusting entry. 

  b. The total estimated uncollectible under the percentage-of-receivables basis (Balance Sheet approach) is $5,800 upon the aging analysis. This amount is the desired new balance in Allowance for Uncollectible Accounts. The difference between the current balance and the desired new balance is the amount to be adjusted. Prepare the adjusting entry.

Required:

 1. Please prepare an adjusting entry for a) and b). Please show your work.

a) % of sales method   Dr Cr

b)% of receivable aging method

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