Grass Frog Company sells merchandise only on credit. For the year ended December 31, 2021, the following data are available:

Sales (all on credit)	$2,100,000
Accounts Receivable, January 1, 2021	305,000
Allowance for doubtful accounts, January 1, 2021 (credit)	25,000
Cash collections during 2021	1,980,000
Accounts written off as uncollected (default) during 2021	15,000

For each problem below, be sure to show your work.

1. Determine the balance of Accounts Receivable at December 31, 2021.

2. Assume that the company estimates bad debts at 4% of credit sales. What amount will the company record as bad debt expense for 2018?

3. Now assume the company estimates bad debts based on the aging method. Estimate the ending balance in the allowance for doubtful accounts at December 31, 2021 using the information below:

AGE CLASS	% UNCOLLECTIBLE	AMOUNT
Not Past Due	1%	$220,000
1-30 Days Past Due	5%	$110,000
31-60 Days Past Due	10%	$40,000
61-90 Days Past Due	25%	$30,000
Over 90 Days Past Due	50%	$10,000

4. What is the net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog from 3. above)?

5. TRUE or FALSE (circle one). If we assume that Grass Frog has a large $ amount of receivables, GAAP would allow Grass Frog to also use the direct write-off method for uncollectible receivables.