Reference no: EM132784952

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
$270,000                     30 days old                   99.5%
65,000                     30 to 60 days old                94.5%
25,000                      61 to 120 days old              73.0%
6,000                         120 days old                     18.0%

problem 1: 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.