An aging of Sernett Company's accounts receivable at the end of 2016 yielded the following information about the lengths of time that the receivables had been outstanding: (picture)

The beginning balance in the Allowance for Doubtful Accounts before adjustments was $500.

Based on the preceding information:

a) What should be the balance in the Allowance for Doubtful Accounts after the adjusting entry?

b) What is the amount of uncollectible accounts expense that should be reported on the income statement?

Number of days past due Current 0-30 days 31-60 days More than 60 days Total Amount of receivables $74,200 18,500 9,200 7,700 Percent that is expected to be uncollectible 1% 3% 5% 14% Allowance account