Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2016, accounts receivable totaled $562,000 and sales were $5,550.000 ($4,500.000 credit sales). The allowance method is used account for uncollectible accounts. The allowance for doubtful accounts had a credit balance of $31,000 at the beginning of 2016 and also S$32,000 in receivables were written off during the year as uncollectible. $1,600 in cash was received in December from a customer whose account previously had been written company estimates bad debts by a applying a of 0.8 % its credit

B. Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2016, accounts receivable totaled $562,000 and sales were S5,550,000 (S4,500,000 credit sales). The allowance method is used to account for uncollectible accounts. The allowance for doubtful accounts had a credit balance of $31,000 at the beginning of 2016 and also $32,000 in receivables were written off during the year as uncollectible. Also, S1.600 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by a applying a percentage of 0.8% to its credit sales. Required: (15 pts) Calculate the ending balance in the allowance for doubtful accounts a) sbbou b) Prepare the journal entries for all transactions affecting the allowance for doubtful accounts, to include the year-end adjusting entry for bad debt expense. e) Show how the accounts receivable will be shown in the 2016 year-end balance sheet. (See page 6)