The question is asking to determine the amount of the adjusting entry for uncollectible accounts using the aging method. Here's how to approach it:

Given Information:

• Accounts Receivable (end of year balance): $5,125,000
• Allowance for Doubtful Accounts (current balance): Debit balance of $32,600
• Sales for the year: $105,550,000
• Estimated Allowance for Doubtful Accounts (from aging method): $225,000

Step-by-Step Solution:

1. Identify the required balance in the Allowance for Doubtful Accounts:

   • The estimated balance needed in the Allowance for Doubtful Accounts is $225,000 (based on the aging of accounts).

2. Determine the current balance of the Allowance for Doubtful Accounts:

   • The current balance is a debit of $32,600.

3. Calculate the required adjustment:

   • The goal is to adjust the Allowance for Doubtful Accounts from a debit balance of $32,600 to a credit balance of $225,000.
   • This means the total change required is the sum of these two amounts:

   $\text{Required adjustment} = 225,000 + 32,600 = 257,600$

Conclusion:

The amount of the adjusting entry for uncollectible accounts is $257,600.

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Would you like to go into more detail on how this method works or ask any questions? Here are 5 related questions to consider:

1. What is the purpose of the Allowance for Doubtful Accounts?
2. How does the aging method work for estimating uncollectible accounts?
3. What happens if there’s a credit balance in the Allowance for Doubtful Accounts before the adjustment?
4. How is the adjusting entry recorded in the journal for uncollectible accounts?
5. Why is it important to track uncollectible accounts separately from Accounts Receivable?

Tip:

The aging method categorizes receivables by how long they have been outstanding, and assigns higher estimated uncollectible rates to older receivables.