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Question - Baltimore 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
$135,000
< 30 days old
98%
60,000
30 to 60 days old
91%
25,000
61 to 120 days old
80%
11,000
> 120 days old
20%
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.
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