At the close of its first year of operations, December 31, 2017, Ski Doo Company had gross accounts receivable of $650,450,000. The balance in the associated allowance for doubtful accounts is $2,100,000 (norm balance). The CFO has determined that the allowance for doubtful account balance should be $3,150,000 at year-end.

Required:

1. Prepare the journal entry to record the necessary adjustment to the allowance account.

2. What is the NET Accounts Receivable balance at 12/31/17 (after the above adjustment)?

Note: Show your work (calculations)