Q-3. (Chapter-7) A7-4: Accounts Receivable-Allowances: At 31 December 20X8, Small Ltd. reported gross accounts receivable of $2,481,800. Investigation showed the following: The credit balance in the allowance for doubtful accounts was $182,400 after write-offs for 1. the year but before any bad debt adjustment. Bad debt expense is based on a percentage of receivables, Based on the latest available facts, $280,000 will not be collected due to collection issues. of 1/10, n/30 were granted to all customers. Accounts receivable were recorded gross 2. and the discounts taken were recorded when taken by the customers in a discounts account. reported contra to the sales account. Estimated discounts inherent in the closing accounts receivable balance were $30,600. The allowance for sales discounts account was established $29,800 last year and has not been adjusted since. Required: Marks) e year-end 2. Show bowr adjust receivable would appear on the statement of financial position on tries with counts receivable. pect to ccou 1 December 20)x8