Based on the information above, you are to describe the theoretical process of calculating the accounts receivable reserve requirement.

Expected Percentage Uncollectible Days Account Outstanding Estimated Uncollectible Amount 0-30 days 31-60 days 61-90 days 91-120 days Over 120 days $351,600 122,400 84,000 66,000 9,600 633,600 0.05% 0.10% 0.20% 0.30% 0.40% $17,580 12,240 16,800 19,800 3,840 $70,260 $633,600 70,260 $563,340 Accounts receivable.. Estimated amount required in the Allowance for Doubtful Accounts (credit balance).... Balance in the account after write-off of uncollectible accounts but before adjustment (debit balance)........................................ Required charge to expense (need to add due to debit balance).. $70,260 8,000 $78,260