A company has the following unadjusted account balances at D…
A company has the following unadjusted account balances at December 31 of the current year; Accounts Receivable of $183,400 and Allowance for Doubtful Accounts of $1,600 (credit balance). The company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end:Account AgeBalanceEstimated Uncollectible PercentageCurrent (not yet due)$ 106,0002.0%1 to 30 days past due54,0004.0%30 to 60 days past due12,00010.0%61 to 90 days past due8,50025.0%Over 90 days past due2,90075.0%Total$ 183,400Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet. Show all work for credit.