At January 1, 2007 the credit balance in the Allowance for Doubtful Accounts of the Master Company was $400,000. For 2007 the provision for doubtful accounts is based on a percentage of net sales. Net sales for 2007 were $50,000,000. Based on the latest available facts, the 2007 provision for doubtful accounts is estimated to be 0.7% of net sales. During 2007 uncollectible receivables amounting to $410,000 were written off against the allowance for doubtful accounts.

Required
Prepare a schedule computing the balance in Master’s Allowance for Doubtful Accounts at December 31, 2007. Show supporting computations in good form.