Basil Corp has been experiencing a high rate of bad debts in the industry in which it operates.
On December 31, before any year end adjustments, the balance of Huron's accounts receivable
account was $2,250,000 and the allowance for doubtful accounts had a balance of $112,500.
The year end balance reported in the statement of financial position for the Allowance for
Doubtful Accounts will be based on the aging schedule shown below.
Days Account Outstanding			Amount			Probability of collection
Less than 15			$ 1,350,000			0.99
16-30			450,000			0.94
31-45			225,000			0.80
46-60			135,000			0.65
61-75			45,000			0.50
over 75			45,000			0.00
Required
a) What is the appropriate balance for the Allowance for Doubtful Accounts on Dec. 31?
b) What is the amount of the adjusting entry to be made in the allowance for doubtful accounts?
c) Show how accounts receivable would be presented on the balance sheet prepared on Dec. 31.