E. (5 points) Sonjas 12-31-14 unadjusted trial balance shows accounts receivable (AR) of $200,000 and an allowance for doubtful accounts of $5,000, credit balance. During 2014, Sonja wrote off $10,000 of AR. During 2014, Sonja had $1,000 of subsequent collections of AR previously written off. Sonja only records AJEs once each year as of year-end 12-31.

1. If Sonja estimates 10% of her receivables will be uncollectible, prepare the AJE she should make to record bad debt expense for 2014.

2. After making the AJE in part (a), what will be the NRV of Sonjas receivables as of 12-31-14?