3. Catering Co. had accounts receivable of $590,000 as at December 31, 2015, and it had a provision for doubtful accounts of $50,000. During January 2016, it was discovered that one credit customer owing $20,000 had gone bankrupt, and one credit customer had run away without paying the $10,000 she owed, both of which were amounts owed from 2015. During January 2016, a total of $490,000 was collected from the accounts receivable, but no additional credit sales were made. Required (a) Show how the accounts receivable would appear in the balance sheet as at December 31, 2015. (b) Show how the accounts receivable would appear in the balance sheet as at January 31, 2016, after writing off the two bad debts but before recording the collection of cash during January (c) Show how the accounts receivable would appear in the balance sheet as at January 30, 2016, after writing off the two bad debts and after recording the collection of cash during January (d) What accounting concepts apply to the creation of the provi- sion for doubtful accounts