appropriate balances and changes. For example, Bad debt expense causes the Allowance balance to increase, while Collections from customers cause the Accounts receivable balance to decrease. Year 0 Year 1 Year 2 Year 3 Credit Sales 67,000 67,500 Collections from 56,300 60,700 Customers Bad Debt 4,700 3,300 Expense Write-offs 3,500 4,100 End. Accounts 25,000 32,000 36,000 Receivable End. Allowance for 5,000 7,000 DA End. Net Accounts 20,000 29,400 Receivable