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Stein, Inc., uses the aging of receivables method to determine the balance in the Allowance...

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Accounting

Stein, Inc., uses the aging of receivables method to determine the balance in the Allowance for Doubtful Accounts. At September 30, Stein has $1.2 million of accounts receivable, distributed within aging categories as follows: not yet past due: $900,000; 130 days past due: $180,000; 3160 days past due: $60,000; 6190 days past due: $40,000; and over 90 days past due: $20,000. The percentages considered uncollectible in each category are: not yet past due: 1.5%; 130 days past due: 3%; 3160 days past due: 5%; 6190 days past due: 25%; and over 90 days past due: 75%. Stein has a credit balance in the allowance account at September 30 of $2,000. The adjustment to fairly state the Allowance for Doubtful Accounts at September 30 is $

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