At December 31, 2021, before any year-end adjustments, the Accounts Receivable balance of Hampton Company, Inc., is $330,000. The Allowance for Uncollectible Accounts has a $15,400 credit balance. Hampton prepares the following aging schedule for Accounts Receivable:

Requirements

1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low?

2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.

3. Show how Hampton will report Accounts Receivable on its December 31 balance sheet.

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Total Balance $330,000 Estimated uncollectible 1-30 Days $130,000 0.6% Age of Accounts 31-60 Days $100,000 3.0% 61-90 Days $70,000 5.0% Over 90 Days $30,000 40.0%