At the beginning of the year the balance in the Allowance for Doubtful accounts was $25,000 (normal balance). During the year $40,000 of accounts were written off and $5,000 of those write-offs were later collected. On December 31, the balance in Accounts receivable was $850,000. You estimate that 7% of accounts receivable will probably become uncollectible.

Calculate the following amounts:

1. The balance in the Allowance for Doubtful Accounts BEFORE the year end adjusting entry (indicate debit or credit)
2. The balance in the Allowance for Doubtful Accounts AFTER the year end adjusting entry (indicate debit or credit)
3. The amount of bad debt expense
4. The Net Realizable Value of Accounts Receivable after the year end adjusting entry