In 2021, Sheffield Company had net credit sales of $1126400. On January 1, 2021, Allowance for Doubtful Accounts had a credit balance of $27200. During 2021, $42500 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $377500, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2021?

In 2021. Sheffeld Company had net credit sales of $1126400. On January 1,2021. Allowance for Doubtful Accounts had a credit balance of $27200. During 2021, \$42500 of uncollectible accounts receivable were written oft. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $377500, what is the required adjustinent to the Allowance for Doubtful Accounts at December 31, 2021