5 P7-3 (Bad-Debt Reporting-Aging) Manilow Corporation operates in an industry that has a high rate of bad debts. Betore any year-end adjustments, the balance in Manilow's Accounts Receivable was $555,000 and Allowance for Doubtful Accounts had a credit balance of $40,000. The year-end balance reported in the statement of financial position for Allowance for Doubtful Accounts will be based on the aging schedule shown below Probability of Collection Days Account Outstanding Less than 16 days 16-30 days 31-45 days 46-60 days 61-75 days Over 75 days Amount $300,000 100,000 80,000 40,000 20,000 15,000 98 90 85 .80 .55 .00 Instructions (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? (b) Show how accounts receivable would be presented on the statement of financial position. (c) What is the dollar effect of the year-end bad debt adjustment on the before-tax income