Campbell Enterprises had record sales in 2020.It began 2020 with an Accounts Receivable balance of $360,000 and an Allowance for Doubtful Accounts of $28,400.Campbell recognized credit sales during the year of $4,521,500 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense.Also during the year the company wrote off $31,185 of accounts that were deemed to be uncollectible, although one customer whose $2,900 account had been written off surprised management by paying the amount in full in late September.Including this surprise receipt, $4,254,190 cash was collected on account in 2020.

In preparation for the audited year-end financial statements, the controller prepared the following aging listing of the receivables at December 31, 2020:

balance percentage estimated to be uncollectible

0-30days outstanding $315,250 3%

31-60days outstanding 182,500 12

61-90days outstanding 68,250 16

over 90 days outstanding 30,125 20

Instructions:

Prepare schedule calculating the balance in Campbell's Allowance for Doubtful Accounts at December 31, 2020.Prepare any necessary journal entry at year end to adjust the allowance for doubtful accounts to the required balance.