McKenzie Ltd. provides for doubtful accounts based on 4% of credit sales. The following data are available for 2012:
Credit sales during 2012………………………………………$3,250,000
Allowance for doubtful accounts Jan. 1, 2012…………………….26,000 cr
Collection of accounts written off in prior years…………………...5,000
Customer accounts written off as uncollectible during 2012……..39,850
Required:
How much should be the balance in the allowance for doubtful accounts at December 31,2012?