Rainy Day Company, a wholesaler, uses the aging method to estimate bad debt losses. The following schedule of aged accounts receivable was prepared at December 31, 2011.
Age of Accounts Amount
0€“30 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $478,600
31€“60 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,300
61€“90 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,200
91€“120 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,300
Over 120 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,300
$759,700
The following schedule shows the year-end receivables balances and uncollectible accounts experience for the previous five years.

The unadjusted Allowance for Bad Debts balance on December 31, 2011, is $30,124. Instructions: Compute the correct balance for the allowance account based on the average loss experience for the last five years and prepare the appropriate end-of-year adjustingentry.

Year-End Receivables 0-30 Days 0.3% 31-60 Days 0.9% 61-90 Days 91-120 Days Over 120 Days Year 52. 1% 49.2 53.7 51.3 49.9 2010 $780,700 750,400 681,400 698,200 723,600 8.7% 9.0 9.5 9.9 8.9 0 80.3 2007 0.2 85.2