BUFFALO CORPORATION Balance Sheet (Partial) Accounts Receivable 585,400 Less 45709 Allowance for Doubtful Accounts 539691 Net Accounts Receivable Buffalo Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Buffalo's Accounts Receivable account was $585,400 and Allowance for Doubtful Accounts had a credit balance of $42,510. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below Probability of Amount Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days $313,200 112,600 85,600 42,400 18,100 13,500 Collection 0.98 0.90 0.86 0.81 0.55 0.00 Between 61 and 75 days Over 75 days Assume that accounts with a zero percent chance of collection are intended to be written off