MAHAL Co. sells a variety of imported goods. By selling on credit, the company cannot expect to collect 100% of its accounts receivable. At May 31, 2018, MAHAL Co. reported the following in its statement of financial position:

Accounts Receivable$56,966

Less: Allowance for bad debts (3,461)

Net Realizable Value$53,496

During the year ended May 31, 2018 MAHAL Co. earned sales revenue of $13,935,082 and collected cash of $13,682,728 from customers. Assume bad debt expense for the year was 1% of sales revenue and that MAHAL Co. wrote off uncollectible accounts receivable totaling $138,628.

Required:

1. What is the accounts receivable balance at May 31, 2018?

2. What is the May 31, 2018 balance of the Allowance for Bad Debts account?