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Problem 7-3A (Algo) Aging accounts receivable and accounting for bad debts LO P2, P3

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[The following information applies to the questions displayed below.] On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age.

Accounts Receivable		Age of Accounts Receivable	Expected Percent Uncollectible
$	860,000	Not yet due	1.15	%
	344,000	1 to 30 days past due	1.90
	68,800	31 to 60 days past due	6.40
	34,400	61 to 90 days past due	32.25
	13,760	Over 90 days past due	67.00

Problem 7-3A (Algo) Part 1

Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.