Question - The following balances relate to ABC Company:
Credit Sales during 2017: $2,000,000
Allowance for bad debt (1/1/2017): $9,000 (credit)
Accounts Receivable (1/1/2017): $100,000
Several transactions related to accounts receivable occurred during 2017.
1. An account with a balance of $800, previously written off, is collected during 2017.
2. Along with this, $1,200 of ABC's accounts receivable are written off in 2017 as non-collectable.
3. At the end of the year, annual bad debts are estimated to be 3% of credit sales.
What is the ending balance in accounts receivable and allowance for bad debts accounts at December 31, 2017 (After Adjustment)?