Cash and Receivables LO5-3) Mediun-10 m P5 35, Accounts receivable and accounting changes( You are auditin with its schedule of accounts receivable categorized by age and expected default rate, as follou you g the receivables section for one of your clients. The company provides Days outstanding from invoice date 0-30 days 31-90 90 days Balance outstanding, December 31 $700,000 $180,000 $37,000 $917,000 Estimated default rate 2% 10% 0.5% Based on the above information, the company's accounting clerk recorded $10,800 as bad debs expense. You collect additional relevant information as follows: Allowance for doubtful accounts (ADA),January 1 Accounts written of during the year Required: Determine what adjustment, if any, is required to correct the company's accounts relating to receivables or bad debts. Provide the journal entry or entries accordingly $12,000 $7,000 Accounts receivable and accounting changes L.O. 5-3) (Difficult -15 minuts 5-3) (Diffcult -15 mindts At December 31, 2014, Kneeland Inc. had $150,000 of accounts receivable and $5,000 in the