From its first day of operations to December 31, 2020, Sheffield Corp. provided for uncollectible accounts receivable under the allowance method:

1.		Entries for bad debt expense were made monthly based on 3.0% of credit sales.
2.		Bad debts that were written off were charged to the Allowance for Doubtful Accounts.
3.		Recoveries of bad debts previously written off were credited to the allowance account.
4.		No year-end adjustments were made to the allowance account.

The balance in Allowance for Doubtful Accounts was $187,000 at January 1, 2020. During 2020, credit sales totalled $9.1 million, interim entries for bad debt expense were based on 3.0% of credit sales, $81,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $12,000. Sheffield upgraded its computer facility in November 2020, and an aging of accounts receivable was prepared for the first time as at December 31, 2020. Campbells usual credit terms were net 30 days, and remain unchanged. A summary of the aging analysis follows:

Classification by Month of Sale		Balance in Each Category				Estimated % Uncollectible
November-December 2020			$1,190,000			9%
July-October 2020			640,000			12.0%
January-June 2020			410,000			30%
Before January 1, 2020			132,000			70%
			$2,372,000

Based on a review of how collectible the accounts really are in the Before January 1, 2020 aging category, additional receivables totalling $73,000 were written off as at December 31, 2020. The 70% uncollectible estimate therefore only applies to the remaining $59,000 in the category. Finally, beginning with the year ended December 31, 2020, Sheffield adopted a new accounting method for estimating the allowance for doubtful accounts: it now uses the amount in the year-end aging analysis of accounts receivable.

Prepare a schedule that analyzes the changes in Allowance for Doubtful Accounts for the year ended December 31, 2020. (Hint: In calculating the allowance amount at December 31, 2020, subtract the $73,000 write off of receivables.)

abies. Balance at January 1, 2020 $187,000 Bad debt expense accrued in 2020 273,000 Recovery of bad debts in 2020 previously written off 12,000 Write offs for 2020 154,000 Change in accounting estimate during 2020 Balance at December 31, 2020 adjusted SHOW LIST OF ACCOUNTS Account Titles and Explanation Debit Credit Bad Debt Expense Allowance for Doubtful Acc (To record adjustment resulting from a change in accounting estimate)