Arundel Company uses aging to estimate uncollectibles

Accounting Oct 12, 2020

Arundel Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:

Dollar Value

Age of Account

Estimated Collectible

$250,000

< 30 days old

99.0%

75,000

30 to 60 days old

90.0%

35,000

61 to 120 days old

79.5%

15,000

> 120 days old

15.0%

The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.

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