1. (15 points) The following information pertains to R:

Gross accounts receivable balance as of 01-01-16 was $75,000

Allowance for doubtful accounts balance as of 01-01-16 was $4,000

Total sales during 2016 (all sales were on a credit basis) were $870,000

AR write-offs during 2016 were $3,000

R's 12-31-16 AR aging analysis indicates a required balance in the allowance for doubtful accounts of $4,750.

The NRV of R's receivables as of 12-31-16 was $90,000.

a. On the basis of the above, how much cash did R collect from its ARs during 2016?

b. Assume R made entries for the facts presented in Question 1. Further assume that prior to making those entries, R's balance sheet indicated the following amounts:

TOTAL ASSETS:$2,500,000

TOTAL LIABILITIES$450,000

TOTAL OWNERS' EQUITY$2,050,000

After recording the entries for the facts presented in Question 1, identify the following amounts for R:

TOTAL ASSETS:$

TOTAL LIABILITIES$

TOTAL OWNERS' EQUITY$