Aaron Servicing showed the following partial unadjusted results at October 31, 2020, its year-end:

Account	Debit		Credit
Sales			$	1,610,000
Accounts receivable	$	145,000
Allowance for doubtful accounts		3,000

Part 1 Required: a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020.

b. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a).