Discount Corporation has the following receivables at the end of the accounting period.
The estimated percent uncollectible for each category is also shown.
Age: Current 30-60 days
past due 61-91 days
past due More than 90 days
past due
Amount: $390,000 $120,000 $75,000 $50,000
% uncollectible 5% 7.5% 22% 55%
Prior to the necessary adjusting entry, Discount\'s Allowance for Doubtful Accounts has a DEBIT balance of $2,500.
What is the amount of the adjusting entry that Discount would need to make?
