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1. At the end of the year, a corporation has a balance in Allowance for Uncollectible Accounts of $230 (credit) before any year-end adjustment. The balance of Accounts Receivable is $16,000. The company estimates that 14 percent of accounts receivable will not be collected over the subsequently year. Record the adjustment for uncollectible accounts. 2. During 2012, its first year of operations, a company gives services on account of $260,000. By end of 2012, cash collections on these accounts total $139,000. The company estimates that 11 percent of accounts receivable will be uncollectible. Record the adjustment for uncollectible accounts on 31st December, 2012. Use these words only: Interest Revenue, Accounts Payable, Notes Payable, Cash, Accounts Receivable, Bad Debt Expense, Allowance for uncollectible accounts, Interest expense.
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