Perkinson Corporation sells paper products to a large number of retailers. Perkinson's accountant has prepared the following aging schedule for its accounts receivable at the end of the year.

Before adjusting entries are entered, the balance in the allowance for doubtful accounts is a debit of $7,213.

Required:
1. Calculate the desired post-adjustment balance in Perkinson's allowance for doubtful accounts.
2. Determine bad debt expense for theyear.

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Accounts Receivable Category Within discount period 1-30 days past discount period 31-60 days past discount period Over 60 days past discount perñiod Proportion Expected to Default 0.004 0.015 0.085 0.200 Amount $384,500 187,600 41,800 21,400