Problem 7-03 blue Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Blue's Accounts Receivable account was $593,900 and Allowance for Doubtful Accounts had a credit balance of $40,480. The year-end balance reported in the balance sheet for Allowance for Doubtful Account will be based on the aging schedule shown below. Probability of Collection 0.98 0.90 Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days (to be written off) Amount $314,700 118,900 82,800 43,900 18,200 15,400 0.86 0.79 0.52 0.00 What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts LINK TO TEXT LINK TO TEXT Show how accounts receivable would be presented on the balance sheet. BLUE CORPORATION Balance Sheet (Partial) $ LINK TO TEXT What is the dollar effect of the year-end bad debt adjustment on the before-tax income? Dollar effect of the year-end bad debt adjustment $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT