Accounting

Wright Products Company was founded in early 2010. Wright offers credit terms (net 30 days) to all of its customers.  As Wright has been required to write-off several customer accounts, Wright uses the allowance method to provide for uncollectible receivables.  During 2018, Wright provided for uncollectible accounts receivable with a monthly provision of 1.5% of credit sales.  However, at year-end, an aging of accounts receivable is prepared and the allowance for uncollectible accounts is adjusted based on an analysis of the aging.  At December 31, 2017, the adjusted balance of the allowance for uncollectible accounts was $64,240, and the balance of accounts receivable was $497,100.
During 2018, Wright wrote-off $53,500 of customer accounts that were deemed to be uncollectible, due to customers declaring bankruptcy or experiencing financial difficulties so severe that extensive collection efforts were not successful.  One customer’s account with a $6,500 balance, which had been written-off in June 2016, was subsequently collected from the customer in April 2018. Wright maintained the same monthly provision of 1.5% of credit sales throughout 2018.  Monthly sales for 2018 are as follows:
January   $ 72,000 
February     99,800
March     80,600 
April       101,000 
May       102,400 
June       88,200
July       77,400
August     91,400
September     81,600
October    105,600 
November     97,800
December     86,200
Total cash collections of accounts receivable during 2018 (not including the collection of the previously written-off account) were $987,600.
In preparation for its year-end closing process, Wright’s controller prepared the following aging of accounts receivable as of December 31, 2018, assigning probabilities of collection based on discussions with Wright’s credit manager:
       Percentage of 
Age of Account Receivable    Accounts Receivable    Probability of Collection  
 0-30 days past due     72%        95%  
 31-60 days past due     15%         86%  
 61-90 days past due      8%         65%  
 greater than 90 days past due      5%      10%    
Requirements
a) Prepare an analysis computing the unadjusted balance in the allowance for uncollectible accounts as of 12/31/18. 
b) Prepare the year-end adjusting journal entry to record bad debt expense based on the 
December 31, 2018 aging of accounts receivable.