From inception of operations to December 31, 2017, Vaughn 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. Vaughn's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $79,000 at January 1, 2017. During 2017, credit sales totaled $6,560,000, interim provisions for doubtful accounts were made at 1% of credit sales, $44,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $3,000. Vaughn installed a computer system in November 2017, and an aging of accounts receivable was prepared for the first time as of December 31, 2017. A summary of the aging is as follows. Classification by Month of Sale Balance in Each Category Estimated % Uncollectible November-December 2017 $685,000 1% July-October 218,000 8% January-June 86,000 30% Prior to 1/1/2017 83,000 90% $1,072,000 Based on the review of collectibility of the account balances in the "prior to 1/1/2017" aging category, additional receivables totaling $32,000 were written off as of December 31, 2017. The 90% uncollectible estimate applies to the remaining $51,000 in the category. Effective with the year ended December 31, 2017, Vaughn adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. (a) Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2017. Show supporting computations in good form. (Hint: In computing the 12/31/2017 allowance, subtract the $32,000 write-off.) VAUGHN CORPORATION Analysis of Changes in the Allowance for Doubtful Accounts For the Year Ended December 31, 2017 $