Luke Company uses the aging approach to estimate uncollectible accounts receivable. Based upon recent collection history, it has developed the following chart indicating percentages of uncollectible accounts receivable.

0-30 days 3%

31-60 days 8%

61-90 days 15%

91-120 days 40%

more than 120 days 60%

At December 31, 20x2, Luke prepared the following aging of its A/R balance.

Age of Receivable Amount of Receivable

0-30 days $5,600,000

31-60 days 2,000,000

61-90 days 300,000

91-120 days 215,000

more than 120 days 10,000

Total $8,125,000

Additional information:

Balance in accounts receivable at 1/1/20x2 $ 7,250,000

20x2 sales 85,600,000

Accounts written off during 20x2 356,000

Balance in allowance for doubtful accounts at 1/1/20x2 395,000

Required:

a. Determine the amount of cash collected from accounts receivable during 20x2.

b. Determine the amount of bad debt expense for Lukes 20x2 I/S.

c. Prepare the adjusting entry that was made on 12/31/20x2 to recognize bad debts for 20x2.

d. Determine the net accounts receivable that will appear on Lukes 12/31/20x2 balance sheet.