Aging of Accounts Receivable

The Miller Company's accounts receivable reveal the following balances by age category:

Age of Account	Receivable balance
0-30 days	$80,000
31-60 days	18,000
61-90 days	8,000
91-120 days	4,000
	$110,000

The allowance for uncollectible accounts has an existing positive balance of $3,420. The company's internal auditors suggest that the following percentages be used to estimate the amount of outstanding receivables that will eventually prove to be uncollectible.

0-30 days	0.50%
31-60 days	1.00%
61-90 days	10.00%
91-120 days	70.00%

Required Calculate the projected new balance for (a) the allowance for uncollectible accounts and (b) the bad debts expense.

A) Allowance for uncollectible accounts	$
B) Bad debt expense	$