1. Dave began the year with a $550,000 balance for A/R and a $15,000 credit balance for ADA. He sold $5,000,000 worth of services, on account, throughout the year. Receivables collected throughout the year totaled $3,500,000. He was also informed that one of his customers had declared bankruptcy and his invoice for $10,000 would not be paid. After analyzing his year-end aging schedule and considering other economic information and forecasts, Dave estimates that 2.5% of his receivables will not be collected. Prepare the JEs for the year and show how the A/R and ADA accounts will appear on the balance sheet