1. 4. 5. Burland, Inc., showed a balance in its Accounts Receivable control of $21,530 as of December 31, 1970. The subsidiary ledger accounts of the company appear below. Credit terms are 60 days net. 3. (Two-month, 6 percent note) 6. Account No. Date May 31 July 1 7 Sept. 1 25 Nov. 1 Dec. 10 Aug. 8 Oct. 4 Nov. 25 Jan. 1 Mar. 1 Dec. 1 Feb. 3 Aug. 3 Feb. 10 Apr. 9 May 4 July 2 Sept. 6 Nov. 26 July 17 Aug. 16 Sept. 30 (open) Oct. 15 18 Dec. 20 Debit 500 500 800 Accounts not due ..... Accounts 1-60 days past due Accounts 61-120 days past due Accounts over 120 days past due 300 840 2,200 12,000 10,000 1,000 1,000 3,000 4,000 3,278 222 500 444 750 600 Credit Balance 500 200 700 300 300 300 840 12,120 3,000 4,000 944 600 400 1,200 900 1,200 840 0 2,200 12,000 120 Cr. 9,880 1,000 2,000 3,000 0 4,000 0 5,278 5,500 500 .% of 1% 2% 5% 50% 944 1,694 750 The Allowance for Doubtful Accounts, before audit, has a credit balance of $500. The Allowance for Doubtful Accounts is to be adjusted to a balance determined as follows: 1,350 750 *** The allowance is to be based only on the trade accounts. Except where payments are earmarked, the oldest items are paid first. From the information presented in the problem: a) Prepare work papers for aging the accounts receivable. In your sched- ule, show also the disposition and any remarks which you, as the audi- tor, would note. b) Show the adjustments necessary for the allowance and also any other necessary adjustments.