Instructions:

1. What is the appropriate balance for Allowance for Doubtful Accounts at year-end?

2. Record the appropriate year-end adjusting entry.

Please, DO NOT copy and paste from other answers on Chegg as many of them are wrong and my question is different. Thank you.

P6.3 (LO 3) Excel (Bad-Debt Reporting-Aging) Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Manilow's Accounts Receivable account was $555,000 and Allowance for Doubtful Accounts had a credit balance of $40,000. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below