P7-3 (Bad-Debt ReportingAging) Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Manilows Accounts Receivable account was $555,000 and the Allowance for Doubtful Accounts had a credit balance of $40,000 The year-end balance reported in the balance sheet for the Allowance for Doubtful Accounts will be based on the aging schedule shown below.