Reference no: EM132592804

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

$300,000                  < 30 days old                  98.5%

60,000                       30 to 60 days old           90.0%

40,000                         61 to 120 days old       74.0%

11,000                     > 120 days old                   13.0%

Question 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.