Problem 5-31 (Algo) Analysis of accounts receivable and allowance for bad debtsdetermine beginning balances LO 5-5

A portion of the current assets section of the December 31, 2023, balance sheet for Carr Company is presented here:

Accounts receivable	$ 53,000
Less: Allowance for bad debts	(6,700)	$ 46,300

The company's accounting records revealed the following information for the year ended December 31, 2023:

Sales (all on account)	$ 392,000
Cash collections from customers	404,000
Accounts written off	15,000
Bad debts expense (accrued at 12/31/23)	13,100

Required:

Using the information provided for 2023, calculate the net realizable value of accounts receivable at December 31, 2022, and prepare the appropriate balance sheet presentation for Carr Company, as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts. Remember that you are solving for the beginning balance of each account.)