Reference no: EM132784512

The following information relates to Gamma Corp's accounts receivable:

accounts receivable balance at the beginning of the year, $800,000;

allowance for uncollectible accounts at the beginning of the year, $19,000 (credit balance);

Sales during the year, $1,820,000;

accounts receivable written off during the year, $49,000;

cash collections from customers, $2,100,000.

Assuming the company estimates bad debts at an amount equal to 8% of ending accounts receivable.

Problem 1: Calculate the year-end balance in the allowance for uncollectible accounts.