From inception of operations to December 31, 2014, Fortner Corporation provided for uncollectible accounts receivable under the allowance method: Provisions were made monthly at 1% of credit sales; bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Fortners usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $132,800 at January 1, 2014. During 2014, credit sales totaled $9,183,700, interim provisions for doubtful accounts were made at 1% of credit sales, $91,837 of bad debts were written off, and recoveries of accounts previously written off amounted to $17,700. Fortner installed a computer system in November 2014, and an aging of accounts receivable was prepared for the first time as of December 31, 2014. A summary of the aging is as follows.

Classification by Month of Sale		Balance in Each Category			Estimated % Uncollectible
NovemberDecember 2014		$1,272,400			3%
JulyOctober		681,000			11%
JanuaryJune		421,500			27%
Prior to 1/1/14		166,600			81%
		$2,541,500

Based on the review of collectibility of the account balances in the prior to 1/1/14 aging category, additional receivables totaling $61,800 were written off as of December 31, 2014. The 81% uncollectible estimate applies to the remaining $104,800 in the category. Effective with the year ended December 31, 2014, Fortner adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable.

Calculate balance in allowance for doubtful accounts at December 31, 2014 (Hint: In computing the 12/31/14 allowance, subtract the $61,800 write-off).

Prepare the journal entry for the year-end adjustment to the Allowance for Doubtful Accounts balance as of December 31, 2014.