In 2022 the Skysong, Inc. had net credit sales of $840000. On January 1, 2022, the Allowance for Doubtful Accounts had a credit balance of $21300. During 2022, $32400 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 $224000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2022?

Answer > 33.500