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From its first day of operations to December 31, 2023, Oriole Corporation has followed ASPE and has provided for uncollectible accounts receivable under the allowance

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From its first day of operations to December 31, 2023, Oriole Corporation has followed ASPE and has 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 $183.000 at January 1, 2023. During 2023, credit sales totalled \$9.2 million, interim entries for bad debt expense were based on 3.0% of credit sales, and recoveries of accounts previously written off amounted to $10,000. In early 2023,$93,000 of bad debts were written off. Oriole upgraded its computer facility in November 2023, and an aging of accounts receivable was prepared for the first time as at December 31, 2023. Oriole's usual credit terms are net 30 days, which remains unchanged. A summary of the aging analysis follows: The balance in Allowance for Doubtful Accounts was $183,000 at January 1, 2023. During 2023, credit sales totalled $9.2 million, interim entries for bad debt expense were based on 3.0% of credit sales, and recoveries of accounts previously written off amounted to $10,000. In early 2023,$93,000 of bad debts were written off. Oriole upgraded its computer facility in November 2023, and an aging of accounts receivable was prepared for the first time as at December 31,2023 . Oriole's usual credit terms are net 30 days. which remains unchanged. A summary of the aging analysis follows: Based on a review of how collectible the accounts really are in the "Before January 1. 2023 "aging category, additional receivables totalling $67,000 were written off as at December 31,2023 . The 65% uncollectible estimate therefore only applies to the remaining $72,000 in the category. Finally. beginning with the year ended December 31, 2023, Oriole 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 31,2023 . 1 Hint In calculating the allowance amount at December 31, 2023, subtract the $67,000 write-olf of receivables.)

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