Owen's, a large department store located in a metropolitan area, has been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging schedule for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analysis discloses the following information:Balance Age of Receivable Estimated Percentage Uncollectible$191,000 Under 30 days 0.8%$115,000 30-60 days 2.0%$73,000 61-120 days 5.0%$41,000 121-240 days 20.0%$25,000 241-360 days 35.0%$19,000 Over 360 days 60.0%$464,000 CHART OF ACCOUNTSCowen's General LedgerASSETS111 Cash121 Accounts Receivable122 Allowance for Doubtful Accounts141 Inventory152 Prepaid Insurance181 Equipment198 Accumulated DepreciationLIABILITIES211 Accounts Payable231 Salaries Payable250 Unearned Revenue261 Income Taxes PayableEQUITY311 Common Stock331 Retained EarningsREVENUE411 Sales RevenueEXPENSES500 Cost of Goods Sold511 Insurance Expense512 Utilities Expense521 Salaries Expense532 Bad Debt Expense540 Interest Expense541 Depreciation Expense559 Miscellaneous Expenses910 Income Tax Expense1. Use the preceding analysis to compute the estimated amount of uncollectible receivables.2. Prepare the journal entry to record Cowen's estimated uncollectible, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is:A. 0B. $3,100 (debit)C. $2,700 (credit)Use the Aging analysis to compute the estimated amount of uncollectible receivables. The estimated amount uncollectible based on the data provided is $_