1.At the end of the first year of operations, Mayberry Advertising had accounts receivable of $22,000. Management of the

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1.At the end of the first year of operations, MayberryAdvertising had accounts receivable of $22,000. Management of thecompany estimates that 12% of the accounts will not becollected.What adjustment would Mayberry Advertising record toestablish Allowance for Uncollectible Accounts?
2. At the end of the year, Mercy Cosmetics’ balance ofAllowance for Uncollectible Accounts is $520 (credit)before adjustment. The balance of Accounts Receivable is $21,000.The company estimates that 10% of accounts will not be collectedover the next year. What adjustment would Mercy Cosmeticsrecord for Allowance for Uncollectible Accounts?