interim provisen From inception of operations to December 31, 2017, Fortner Corporation provided for uncollectible accounts receivable under the allowance method: provisions were made monthly at 2% of credit sales; bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account; and no year-end adjustments to the allowance account were made. Fortner's usual credit terms are net 30 days. The balance in the Allowance for Doubtful Accounts was $130,000 at January 1, 2017 During 2017 credit sales totaled $9,000,000, interim provisions for doubtful accounts were made at 2% of credit sales, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Fortner installed a computer system in November 2017, and an aging of accounts receivable was prepared for the first time as of December 31, 2017. A summary of the aging is as follows. Classification Estimated % Uncollectible Balance in Each Category by Month of Sale November-December 2017 2% $1,080,000 10% July-October 650,000 January-June 25% 420,000 Prior to 1/1/17 80% 150,000 Total $2,300,000 Based on the review of collectibility of the account balances in the "prior to 1/1, 17 aging category, additional receivables totaling $60,000 were written off as of December 31, 2017. The 80% uncollectible estimate applies to the remaining $90,000 in the category. In the November to December 2017 aging category, there was $150,000 receivable from one of its wholly owned subsidiary. Effective with the year ended December 31, 2017, Fortner adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. Instructions (a) Prepare a schedule analyzing the changes in the Allowance for Doubtful Accounts for the year ended December 31, 2017 in the consolidated balance sheet. (b) Prepare the journal entry for the year-end adjustment to the Allowance for Doubtful Accounts balance as of December 31, 2017