On December 31, 2018 SOS Co. has $30,000 of accounts receivable. SOS uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $790. SOS has the following transactions for 2019:

1. Provided services of $392,000 to customers on account.
2. Received $377,540 cash in payment of accounts receivable.

1. Prepare the above journal entries (a and b) for 2019.

SOS uses the aging method for estimating the bad debt expense. Below is the aging analysis as of 12/31/19.

0-60 days	37,700	1.5%
61-120 days	4,200	14%
> 120 days	2,560	32%
	44,460

2. Calculate the ending balance of the Allowance for Doubtful Accounts.

3. Prepare the journal entry to record the estimated bad debt expense.

4) Show the balance sheet presentation of Accounts Receivable as of 12/31/19.