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Problem - A Company uses aging to estimate uncollectibles. At the end of the fiscal year, Accounts Receivable has a balance that consists of:
Dollar Value
Age of Account
Estimated Collectible
$195,000
< 30 days old
99%
70,000
30 to 60 days old
94%
40,000
61 to 120 days old
78%
14,000
> 120 days old
12%
Required - 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?
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