Problem 7-03 Novak Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Novak's Accounts Receivable account was $595,800 and Allowance for Doubtful Accounts had a credit balance of $40,550. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. 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 $316,300 117,200 81,400 44,800 20,300 15,800 Probability of Collection 0.96 0.90 0.85 0.80 0.58 0.00 what is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts LINK TO TEXT Show how accounts receivable would be presented on the balance sheet. NOVAK 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