A company recorded credit sales of $772,000, of which $550,000 is not yet due, $150,000 is past due for up to 180 days, and $72,000 is past due for more than 180 days. Under the aging of receivables method, the company expects it will not collect 5% of the amount not yet due, 16% of the amount past due for up to 180 days, and 21% of the amount past due for more than 180 days. The allowance account had a debit balance of $4,500 before adjustment. After adjusting for bad debt expense, what is the ending balance of the allowance account? Multiple Choice $27,500 $66,620 $71,720 $71,120
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