Splish Brothers Inc. sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of $\frac{2}{10},\frac{n}{30}.$ In the past, over $75\%$ of the credit customers have taken advantage of the discount by paying within $10$ days of the invoice date.

The number of customers taking the full $30$ days to pay has increased within the last year. Current indications are that less than $60\%$ of the customers are now taking the discount. Bad debts as a percentage of gross credit sales have risen from the $2\mathrm{.}5\%$ average in past years to about $4\mathrm{.}7\%$ in the current year.

The company's Finance Committee has requested more information on the collections of accounts receivable. The controller responded to this request with the following report.

Aliowance for Doubtful Accounts had a credit balance of $$27,000$ on June $1,2019.$ Splish Brothers has provided for a monthly bad debt expense accrual during the current fiscal year based on the assumption that $4\mathrm{.}7\%6$ of gross credit sales will be uncollectible. Total gro$5$s credit sales for the $2019-2020$ fiscal year amounted to $$2,900,000.$ Write$-$offs of bad accounts during the year totaled $$103,000.$

$($b$1)$

Compute the amount of the vear$-$end adjustment necessary to bring Allowance for Doubtful Acrounts to the balance indicated by the age analysis.

Additional allowamce needed