ABC Company has the following account balances on December 31 Accounts receivable $135,000 and Allowance for doubtful accounts $2,600 (Debit Balance) Aging of accounts receivable shows The following;

Aging Amount Uncollectible

Current 80,000 2%

1-30 days overdue 22,000 10%

31-60 days overdue 15,000 20%

61-90 days overdue 10,000 40%

over 90 days overdue 8,000 50%