Oriole Equipment Sales Company, which sells only on account. had a $138,000 balance in its Accounts Receivable and a $5600 balance in its Allowance for Expected Credit Losses on December 31, 2023. During 2024, the company's sales of equipment were $846000, and its total cash collections from customers were $792000.

During year, the company identified customers with accounts totalling $7000 that would be unable to pay and wrote these receivables off However, one of these customers subsequently made a payment of $860. (Note that this amount is not included in the cash collections noted above.) At the end of 2024, management grouped its receivables based on credit risk and estimated the expected rate of credit losses for each group. Based on this. management determined that the total expected credit losses would be $8550.

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