Proli Footwear Allowance for Doubtful Accounts Worksheet December 31, 2014 ance per o Add: Monthly recurring entries Subtotal Less: Actual Mite-offs during year Balance per trial balance - 12/31/2014 Audit adjustments: Balances before bad debt expense adjustment 4.3% of adjusted accounts receivable (1) Adjustment required Balances before bad debt expense adjustment AJE 4-12 Balance per audit - 12/31/2014 Adjusted ending accounts receivable balance Experience ratio Required ending allowance balance Allowance Account 880,000 Bad Debt Expense 880,000 880,000 880,000 (1) Based on 12/31/2014 analysis of aged accounts receivable, management agrees that the allowance should be adjusted to 4.3% of ending accounts receivable balance. RP