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 , 2002.

The following schedule shows the year-end receivables balances and uncollectible accounts experience for the previous 5 years.

The unadjusted allowance for bad debts balance on December 31, 2002, is \($32,796\).
Instructions:

Compute the correct balance for the allowance account based on the average loss experience for the last 5 years and prepare the appropriate end-of-year adjusting entry.

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Age of Accounts 0-30 days 31-60 days 61-90 days 91-120 days Over 120 days Amount $561,600 196,100 88,400 18,500 9,600 $874,200