Nethery Co. shows the following account balances on October 31, 2017, its fiscal year-end.

Account	Debit	Credit
Accounts receivable	$41,000
Allowance for doubtful accounts		$300
Sales ($60,000 cash sales)		430,000

The companys accountant estimates bad debts to be 3.5% of credit sales.

Required:

Prepare the adjustment to allowance for doubtful accounts based on the information above.

Show how accounts receivable, net would be disclosed on the balance sheet.