Hudson Co$.$s December $31$ balances from the prior year related to accounts receivable as follows:

Accounts Receivable $($DR$)$ $$600,000$

Allowance for doubtful accounts $($CR$)$ $$10,000$

During the current year, $$15,000$ of accounts receivable is considered uncollectible, and no more effort to collect these accounts will be made. Total sales for the current year are $$4,000,000$ of which $$600,000$ are cash sales. A total of $$2,500,000$ cash was collected during the current year from sales that were originally made on account.

Requirements:

A$.$ Assuming that Hudson Co$.$ applies the allowance method to estimate net accounts receivable and uses $10\%$ of accounts receivable as its estimate of expected credit losses, prepare the disclosure on gross and net accounts receivable on the balance sheet at December $31$ of the current year.