Innovations Corp (IC) uses the percentage of credit sales method to estimate bad debts each month and then uses the aging method at year-end. During November 2014, IC sold services on account for $106,000 and estimated that of one percent of those sales would be uncollectable. At its December 31 year-end, total Accounts Receivable is $99,000, aged as follows: (1) 1 to 30 days old, $80,000; (2) 31 to 90 days old, $13,500; and (3) more than 90 days old, $5,500. Experience has shown that for each age group, the average rate of uncollectability is (1) 1 percent, (2) 15 percent, and (3) 40 percent, respectively. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $2,200 credit balance at December 31, 2014.