Aging Method

On January 1, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts:

Accounts Receivable	$273,000
Allowance for Doubtful
Accounts (a credit balance)	49,140

During the year, Hungryman had $1,080,000 of credit sales, collected $723,600 of accounts receivable, and wrote off $45,200 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $60,000 will be uncollectible.