Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings:

a. Not yet due	$ 300,000
b. 1 to 30 days past due	126,000
c. 31 to 60 days past due	48,000
d. 61 to 90 days past due	9,000
e. Over 90 days past due	18,000
Total	$ 501,000

On the basis of past experience, the company estimated the percentages probably uncollectible for the five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent.

The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $7,080.

Required:

1. Compute the estimated amount of uncollectible accounts based on the given classification by age groups.

2. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount.

3. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $5,160 was worthless because of the bankruptcy of the client, Safeland Company. Prepare the journal entry required on January 10 to to write off this account.