PLEASE EXPLAIN THOROUGHLY

Bridgeport Corp's balance sheet at December 31, 2016, included the following. Note receivable $740,000 Interest receivable 34,000 Accounts receivable 1,400,000 Less: Allowance for doubtful accounts receivable 84.000 1.316.000 $2,090.000 The following occurred in 2017. 1. Bridgeport made sales of $10,620,000. All sales were credit sales. Bridgeport allows some discounts for early payment of receivables and uses the gross method to record sales. 2. Customer accounts of $85.000 were written off during the year. 3. Accounts receivable of $10,720.000 were collected. Collections for the year included $300,000 of accounts on which 1% sales discounts were allowed. 4. $15,000 was received in payment of an account which was written off the books as worthless in 2016. 5. At year-end (December 31, 2017), Bridgeport estimated that its Allowance for Doubtful Accounts needed a balance of $69,000. This estimate is based on an analysis of aged accounts receivable. 6. The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date. 5. Bad Debt Expense 69,000 Allowance for Doubtful Accounts 69,000