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Rose Co. operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Roses Accounts Receivable was

Rose Co. operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Roses Accounts Receivable was $4,440,000 and Allowance for Doubtful Accounts had a credit balance of $320,000. The year-end balance reported in the statement of financial position for Allowance for Doubtful Accounts will be based on the following aging schedule.

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Days Account Outstanding Less than 16 days 1630 days 31-45 days 46-60 days 61-75 days Over 75 days Amount $2,400,000 800,000 640,000 320,000 160,000 120,000 Probability of Collection .98 90 .85 .80 .55 .00 Required: What is the appropriate balance for Allowance for Doubtful Accounts at year-end

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