Part 3. Calculating an Allowance for Doubtful Accounts

Calculate the required balance in the allowance for doubtful accounts for the Smith Company as of December 31, 2020.

The data you will need to compute the required balance in the Allowance is presented in the first three columns (all data shown is as of December 31, 2020). Amounts entered in the column Required Balance in Allowance should be rounded to the nearest dollar.

Age	Amount	Percentage Estimated to Be Uncollectible	Required Balance in Allowance
Under 30 days	$720,000	0.4%
30 60 days	$165,000	4.3
61 90 days	$ 21,000	13.0
91 120 days	$ 9,000	18.7
Over 120 days	$ 56,000	24 .0