As an interim measure, Rickard Manufacturing Inc. calculates its allowance for doubtful accounts based on 3% of credit sales on a monthly basis. It then uses the balance sheet approach to estimate the required year-end allowance for doubtful accounts. The following data are available for the 11 months ending November 30, 20X5:

Total sales for the 11 months ending November 30 20X5

$4,000,000

Credit sales as a percentage of total sales

80%

Allowance for doubtful accounts January 1, 20X5

$60,000 CR

Collection of accounts written of in prior years

$9,000

Customer accounts written off as uncollectable between January 1 and November 30, 20X5

$35,000