Question

The totals from the Savoy Company's Schedule of Accounts Receivableby Age as of the end of the current year are shown below.

Account

Balance

Current

1-30

31-60

Over 60

Totals

$11,800

$9,200

$1,500

$600

$500

As of the end of the current year, there is a debit balance of $75in the Allowance for Doubtful Accounts.

To estimate uncollectible accounts use the following rates:

Current 1%

1-30 days past due 5%

31-60 days past due 15%

Over 60 days past due 40%

Compute the amount of the adjusting entry for uncollectibleaccounts expense.