Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. Its Allowance for Doubtful Accounts has a $3,200 credit balance prior to adjusting entries. It has just completed an aging analysis of accounts receivable at December 31, Year 1. This analysis disclosed the following information: Age Percentage Group Considered Total Uncollectible Not yet due $ 92,000 1% 1-30 days past due $ 40,000 4% 31-60 past due $ 33,000 8%

What is the appropriate balance for Oceansides Allowance for Doubtful Accounts at December 31, Year 1?

Multiple Choice

$165,000.

$5,160.

$85,000.

$3,560.