A company ages its accounts receivable as follows:

Age Interval

Balance

Percent Uncollectible

Not past due

$865,000

 1%

1-30 days past due

 110,000

 2%

31-90 days past due

  65,000

15%

91-180 days past due

  42,000

60%

over 180 days past due

  15,000

90%

(a)

Estimate what the proper balance of the allowance for doubtful accounts should be at fiscal year end.

(b)

Assuming the allowance for doubtful accounts has a credit balance of $6,500 prior to adjustment; prepare the adjusting entry to record uncollectible expense at fiscal year end.

(c)

Assuming the allowance for doubtful accounts has a debit balance of $4,700 prior to adjustment, prepare the adjusting entry to record uncollectible expense at fiscal year end.