Problem 7-4 (Part Level Submission) From inception of operations to December 31, 2017, Coronado 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 year-end adjustments to the allowance account were made. Coronado's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $147,500 at January 1, 2017. During 2017, credit sales totaled $9,175,300, the provision for doubtful accounts was determined to be $183,506, $91,753 of bad debts were written off, and recoveries of accounts previously written off amounted to $19,230. Coronado 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 Month of Sale Balance in Each Category Estimated % Uncollectible 2% November-December 2017 July-October January-June Prior to 1/1/17 $1,291,600 661,500 432,800 161,400 $2,547,300 11% 27% 81% Based on the review of collectibility of the account balances in the "prior to 1/1/17" aging category, additional receivables totaling $63,700 were written off as of December 31, 2017. The 81% uncollectible estimate applies to the remaining $97,700 in the category. Effective with the year ended December 31, 2017, Coronado adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. (a) 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 $63,700 write-off.) CORONADO CORPORATION Analysis of Changes in the Allowance for Doubtful Accounts For the Year Ended December 31, 2017 Computation of Allowance for Doubtful Accounts at December 31, 2017 Aging Doubtful Category Balance Accounts Nov-Dec 2017 % $ July-Oct Jan-June Prior to 1/1/17