Paisley Corporation operates in an industry that has a high rate of bad debt. The year-end balance reported in the balance sheet for the Allowance for Doubtful Accounts will be based on the aging schedule shown below:

Days Account Outstanding	Amount	Probability of Not Collecting
Less than 30 days	$351,600	.05
Between 31 and 60 days	122,400	.10
Between 61 and 90 days	84,000	.20
Between 91 and 120 days	66,000	.30
Over 120 days	$ 9,600	.40

Before year-end adjustments, Paisleys Allowance for Doubtful Accounts had a debit balance of $8,000

1. What is the appropriate balance for the Allowance for Doubtful Accounts at year-end?
2. Show how accounts receivable would be presented on the balance sheet. State the differences between U.S. GAAP and IFRS reporting for accounts receivable.
3. What is the year-end bad debt adjustment?