Problem 7-4 (Part Level Submission) From inception of operations to December 31, 2017, Flint Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no yearend adjustments to the allowance account were made. Flint's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $136,500 at January 1, 2017. During 2017, credit sales totaled $9,130,600, the provision for doubtful accounts was determined to be $91,306, $91,306 of bad debts were written off, and recoveries of accounts previously written off amounted to $17,640. Flint installed a computer system in November 2017, and an aging of accounts receivable was prepared for the first time as of December 31, 2017. A summary of the aging is as follows. Classification by Balance in Estimated % Month of Sale Each Category Uncollectible NovemberDecember 2017 $1,286,600 2% JulyOctober 692,100 9% JanuaryJune 435,700 27% Prior to 1/1/17 154,500 84% $2,568,900 Based on the review of collectibllity of the account balances in the \"prior to 111/17\" aging category, additional receivables totaling $54,100 were written off as of December 31, 2017. The 84% uncollectible estimate applies to the remaining $100,400 in the category. Effective with the year ended December 31, 2017, Flint adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the yearend aging analysis of accounts receivable. V (3) Your answer is partially correct. Try again. Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2017. Show supporting computations in good form. (Hint: In computing the 12/31/17 allowance, subtract the $54,100 writeoff.) FLINT CORPORATION Analysis of Changes in the Allowance for Doubtful Accounts For the Year Ended December 31, 2017 III Provision for doubtful accounts 136500 Provision for doubtful accounts 4} 4} Write-offs for 2017 145406 1} 373212 $ El ............ El . . _ " - Less 3 :. Recovery In 2017 of bad debts written off preVIously - E E E $ 17640 Recovery in 2017 of bad debts written off previously 3 4} Balance at December 31, 2017 adjusted Computation of Allowance for Doubtful Accounts at December 31, 2017 Aging Doubtful Category Balance Accounts Nov-Dec 2017 to 1286600 $ 25732 July-Oct 692100 9 62289 V V Jan-June 435700 27 % 117639 X X Prior to 1/1/17 154500 84 129780 X 335440 $