Problem 1 The following information is available for Victorias Vacuum Emporium:

2014. 2015. 2016 Cash Sales $ 740,000 $ 860,000 $ 775,000 Credit Sales. 975,000 1,320,000. 1,270,000 Total. 1,715,000 2,180,000. 2,045,000

Accounts Receivable (end of yr): 218,000 242,300 233,600

Allowance for Bad Debts (end of yr): 36,675 42,575 42,775

Accounts written off during the year: 10,400 27,100 31,550

a. Presume there was no change in the method used to estimate bad debts during three-year period. What was the balance in the Allowance account at the beginning of 2014? (THINK!) b. How much cash was collected from customers in 2015? (THINK some more!) c. What account(s) and amount(s) would appear on a 2016 income statement?