A company has the following unadjusted account balances at December 31, of the current year; Accounts Receivable of $183,400 and Allowance for Doubtful Accounts of $1,600 (credit balance). The company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end:Account AgeBalanceEstimated Uncollectible PercentageCurrent (not yet due)$106,0002.0%1-30 days past due54,0004.0%30-60 days past due12,00010.0%61-90 days past due8,50025.0%Over 90 days past due2,90075.0%Total$183,400?Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet.
What will be an ideal response?
| $106,000 | * .02 = | $2,120 |
| 54,000 | * .04 = | 2,160 |
| 12,000 | * .10 = | 1,200 |
| 8,500 | * .25 = | 2,125 |
| 2,900 | * .75 = | 2,175 |
| ? | $9,780 |
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