Question - At the beginning of the year, accounts receivable were $151,000 and the allowance for bad debts was $12,200. During the year, sales (all on account) were $607,000, cash collections were $587,000, bad debts expense totaled $16,300, and $12,700 of accounts receivable were written off as bad debts.
Required: Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts.