During year 2, $170,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $13,000 were subsequently collected. At the end of year 2, an aging of accounts receivable indicated a need for a $237,000 allowance to cover possible failure to collect the accounts currently outstanding.

Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end