At January 1, 2010, the credit balance in the allowance for doubtful accounts of the Master Company was $400,00. For 2010, the provision for doubtful accounts is based on a percentage of net sales. Net sales for 2010 were $50,000,000. Based on the latest available facts, the 2010 provision for doubtful accounts is estimated to be 0.7% of net sales. During 2010 , 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 31,2010. Show supporting computations in good form.