C&N Ltd$,$ is a manufacturer that makes all sales on a $30-$days credit terms. Annual sales are approximately $$25$ million. At the end of $2016$ accounts receivable were presented in the company$$s Balance Sheet as below:

Accounts Receivable

$$2,350,000$

Less: Allowance for Doubtful accounts

$$70,000$

During $2017,$ $$740,000$ in accounts receivable were written off as uncollectible. Of these amounts written off, receivables totaling $$24,000$ were unexpectedly collected. At the end of $2017,$ an aging of accounts receivable indicated a need for an $$80,000$ allowance to cover possible failure to collect the accounts currently outstanding.

C&N Ltd makes adjusting entries in its accounting records only at year end.