P$7-4($Bad$-$Debt Reporting$)$ From inception of operations to December $31,2010,$ Fortner Corporation provided for uncollectible accounts receivable under the allowance method: provisions were made monthly at $2\%$ of credit sales; bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account; and no year$-$end adjustments to the allowance account were made. Fortner's usual credit terms are net $30$ days.

The balance in the Allowance for Doubtful Accounts was $$130,000$ at January $1,2010.$ During $2010$ credit sales totaled $$9,000,000,$ interim provisions for doubtful accounts were made at $2\%$ of credit sales, $$90,000$ of bad debts were written off, and recoveries of accounts previously written off amounted to $$15,000.$ Fortner installed a computer system in November $2010,$ and an aging of accounts receivable was prepared for the first time as of December $31,2010.$ A summary of the aging is as follows.

$\backslash$table$[[\backslash$table$[[$Classitication by$],[$Month of Sale$]],\backslash$table$[[$Balance in$],[$Each Category$]],\backslash$table$[[$Estimated $\%],[$Uncollectible$]]],[$November$-$December $2010,$$$1,080,000,2\%$