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E7-11 AICPA Adapted Receivables—Bad Debts At January 1, 2010, the credit balance in the Allowance forDoubtful Accounts of the Master Company was $400,000. For 2010, the provision for doubtful accounts is based on a percentageof net sales. Net sales for 2010 were $50,000,000. Based on the latest available facts, the 2010 provision for doubtfulaccounts is estimated to be 0.7% of net sales. During 2010, uncollectible receivables amounting to $410,000 were writtenoff against the allowance for doubtful accounts.RequiredPrepare a schedule computing the balance in Master’s Allowance for Doubtful Accounts at December 31, 2010. Show supportingcomputations in good form
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