Response to the following problem:
Circuit Software made credit sales of $500,000 during 20X8. Experience indicates that uncollectible-account expense is 1/2 of 1% of credit sales.
At December 31, 20X8, Circuit Software's Accounts Receivable balance is $130,000, and Allowance for Uncollectible stands at $1,600 before the year-end adjustment.
Record uncollectible-account expense for 20X8. Then report Circuit Software's receivables, net of the allowance, at December 31, 20X8.