Problem 7-03 (Part Level Submission) Monty Corp. had record sales in 2020. It began 2020 with an Accounts Receivable balance of $460,000 and an Allowance for Doubtful Accounts of $32,000. Monty recognized credit sales during the year of $6,695,000 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year, the company wrote off $36,100 of accounts that were deemed to be uncollectible, although one customer whose $3,600 account had been written off surprised management by paying the amount in full in late September. Including this surprise receipt, $6,542,000 cash was collected on account in 2020 To assess the reasonableness of the allowance for doubtful accounts, the controller prepared the following aged listing of the receivables at December 31, 2020: Probability of Collection Days Account Outstanding Amount Less than 16 days $303,600 97% Between 16 and 30 days 119,000 91% Between 31 and 45 days 76,000 82% Between 46 and 60 days 38,100 70% Between 61 and 75 days 18,900 52% Over 75 days 24,900 0% $580,500 (a) Reconcile the 2020 opening balance in Accounts Receivable to the $580,500 ending balance on the controller's aged listing. Accounts Receivable Reconciliation