Problem 7-03 Bramble Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Bramble's Accounts Receivable account was $590,400 and Allowance for Doubtful Accounts had a credit balance of $40,320. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability 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 $312,000 116,300 84,500 40,600 21,600 15,400 Collection 0.96 0.90 0.86 0.80 0.55 0.00 What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts Problem 7-13 (Part Level Submission) The cash account of Sheridan Co. showed a ledger balance of $22,679.53 on June 30, 2020. The bank statement as of that date showed a balance of $24,070. Upon comparing the statement with the cash records, the following facts were determined. 1. There were bank service charges for June of $145. 2. A bank memo stated that Bao Dai's note for $6,960 and interest of $208.80 had been collected on June 29, and the bank had made a charge of $31.90 on the collection. (No entry had been made on Sheridan's books when Bao Dai's note was sent to the bank for collection.) 3. Receipts for June 30 for $19,662 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $12,389.09. 5. The bank had charged the Sheridan Co.'s account for a customer's uncollectible check amounting to $1,468.56 on June 29 6. A customer's check for $522 (as payment on the customer's Accounts Receivable) had been entered as $348 in the cash receipts journal by Sheridan on June 15. 7. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $337.56 had been entered as $3,375.60. Both checks had been issued to pay for purchases and were payments on Sheridan's Accounts Payable