3Q.

At the beginning of the year, accounts receivable were $151,000 and the allowance for bad debts was $12,200. During the year, sales (all on account) were $607,000, cash collections were $587,000, bad debts expense totaled $16,300, and $12,700 of accounts receivable were written off as bad debts.

Required:

Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts. (Hint: Use T-accounts to analyze each of these accounts, plug in the amounts that you know, and solve for the ending balances.)

Ending Balance:

Accounts receivable: $_________________

Allowance for bad debts: $_________________