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ACME Plumbing estimates that 1% of each months net credit sales will be ...

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Accounting

ACME Plumbing estimates that 1% of each months net credit sales will be
uncollectibile. The sales for the first quarter were $100,000 split evenly
throughout the quarter and 90% of those sales were on account.
The second quarter saw a spike in sales in April, $50,000 net credit sales
with May and June falling to $25,000 credit sales each month.
The last half of the year had $800,000 credit sales recorded.
Year end accounts receivable were $90,000.
The aging report showed $45,000 current, $25,000 over 45 days and $20,000
over 100 days.
Management applied the following estimates of impairment on the groups
Current 2%
45 plus 10%
100 plus 25%
Required
Would ACME Plumbing have to adjust their allowance for expected
credit losses before issuing their SFP?
If so what would the journal entry be?

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