P7-3

please show calculations

73 LO3) EXCEL (Bad-Debt Reporting-Aging) Manilow Corporation operates in an industry that has a high rate of bad Before any year-end adjustments, the balance in Manilow's Accounts Receivable account was $555,000 and Allowance for ful Accounts had a credit balance of $40,000. The vear-end balance reported in the balance sheet for Allowance for Doubtful unts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $300,000 Between 16 and 30 days 100,000 Between 31 and 45 days 80,000 Between 46 and 60 days 40,000 Between 61 and 75 days Over 75 days 15.000 -85 20,000 288 Instructions (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? (b) Show how accounts receivable would be presented on the balance sheet. (e) What is the dollar effect of the year-end bad debt adjustment on the before-tax income