Exercise 7-14 (Algo) Calculate uncollectible accounts using the aging method; record adjustments [LO7-5, 7-6]

Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts.

1. Accounts not yet due = $333,000; estimated uncollectible = 10%.
2. Accounts 130 days past due = $41,600; estimated uncollectible = 14%.
3. Accounts 3190 days past due = $33,300; estimated uncollectible = 17%
4. Accounts more than 90 days past due = $25,000; estimated uncollectible = 21%.

At 12/31/2021, before recording any adjustments, Zuo has a credit balance of $25,500 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Zuos allowance for uncollectible accounts. 2. What journal entry should Zuo record to adjust its allowance for uncollectible accounts? 3. Calculate Zuos 12/31/2021 net accounts receivable balance.