At January 1, 2020, the credit balance of Bramble Corp.s Allowance for Doubtful Accounts was $ 402,000. During 2020, the bad debt expense entry was based on a percentage of net credit sales. Net sales for 2020 were $ 79 million, of which 90% were on account. Based on the information available at the time, the 2020 bad debt expense was estimated to be 0.80% of net credit sales. During 2020, uncollectible receivables amounting to $ 508,000 were written off against the allowance for doubtful accounts. The company has estimated that at December 31, 2020, based on a review of the aged accounts receivable, the allowance for doubtful accounts would be properly measured at $ 534,500.

(a1)

Prepare a schedule calculating the balance in Bramble Corp.s Allowance for Doubtful Accounts at December 31, 2020.

Balance, January 1, 2020		$ enter a dollar amount
Bad debt expense accrual		enter a dollar amount
		enter a subtotal of the two previous amounts
Uncollectible receivables written off		enter a dollar amount
Balance, December 31, 2020 before adjustment		enter a total amount for the first part
Allowance adjustment		enter a dollar amount
Balance, December 31, 2020

Prepare any necessary journal entry at year end to adjust the allowance for doubtful accounts to the required balance.