Gravenhurst, Inc. provided the following aging of its receivables at December 31, 2021. Estimated Receivables % Age of Accounts Balance Uncollectible 0-30 days $420,000 0.5% 31 to 60 days 200,000 5.2% 61 to 90 days 75,000 10.3% 91 to 120 days 35,000 21.5% Over 121 days 15,000 75.2% Total $745,000 During the year, $22,500 of receivables were written off. The balance at the beginning of the year in the allowance account was a credit of $25,000. Required: a) Determine how much Gravenhurst will report as bad debt expense for the year based on the aging above. Show all calculations. Note: The expense for 2021 needs to take into consideration the $25,000 credit balance in the allowance account at the beginning of the year and subtract the debit from the $22,500 of write-offs. So first figure out how much is already in the allowance account. Then adjust that amount to amount from the aging analysis calculation to get this year's bad debt expense. b) Determine how much is the net realizable value of Gravenhurst's receivables will be on the balance sheet at year-end. Show the calculation. c) Briefly explain how the company might manipulate the allowance account amount to "manage earnings" and what account in this discussion directly affects earnings (net income).