What adjustment will have to be made at end of the period

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Reference no: EM1312483

Adjustment entry for Allowance for Doubtful accounts at the end of the year .

The Draber Company uses the allowance method based on the aging method to determine the estimated allowance for doubtful accounts. Below is presented an aging at the end of the current period with the percent uncollectible experience rates:

		Number of Days Outstanding
	Total	0-30 days	31-60 days	61-90 days	91-120 days	Over 120 days
Accounts Receivable	$450,000	$220,000	$100,000	$45,000	$30,000	$55,000
%uncollectible rate		2%	4%	6%	8%	10%

If the allowance for doubtful accounts before any necessary adjustment is at $10,000, what adjustment will have to be made at the end of the period? You may use a journal entry to help answer the question, but this is not required.

Reference no: EM1312483

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