ALLOWANCE FOR DOUBTFUL ACCOUNTS At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for doubtful accounts of $6,307. During the year Kullerud made credit sales of

$890,000, collected receivables in the amount of $812,000, wrote off receivables in the amount of $31,425, and recorded bad debt expense of $33,750.

Required:

Compute the ending balance in Kullerud’s allowance for doubtful accounts.

Exercise