The following information relates to Sheridan Company's accounts receivable: Accounts receivable balance on December 31, 2023 $926,000 Allowance for expected credit losses balance on December 31, 2023 64,000 Credit sales made in 2024 5,812,000 Collections from customers on account in 2024 4,896,000 Accounts receivable written off in 2024 86,000 Accounts previously written off that were recovered in 2024 6,000 (not included in the collections above) After grouping its receivables by geographic region, the credit risk characteristic identified as being best for determining credit losses, and estimating the expected rate of credit losses for each group, the company estimates that the total expected credit losses at December 31, 2024, will be $80,000. The allowance account is to be adjusted accordingly.