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Larkspur Corporation operates in an industry that has a high rate of bad debts. Before...

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Accounting

Larkspur Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Larkspur's Accounts Receivable account was $595,800 and Allowance for Doubtful Accounts had a credit balance of $40,550. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below.
\table[[Days Account Outstanding,Amount,\table[[Probability of],[Collection]]],[Less than 16 days,$316,300,0.96],[Between 16 and 30 days,17,200,0.90],[Between 31 and 45 days,81,400,0.85],[Between 46 and 60 days,44,800,0.80],[Between 61 and 75 days,20,300,0.58],[Over 75 days (to be written off),15,800,0.00]]
(a)
Your answer is incorrect.
What is the appropriate balance for Allowance for Doubtful Accounts at year-end?
Balance for Allowance for Doubtful Accounts
$
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