Question 1: What should be the adjusted accounts receivable balance on December 31, 2019? (Write on your documentation your proposed entry to client to adjust unallocated difference between the control account and the subsidiary ledger)

Question 2: What should be the required balance of the allowance for bad debts account on December 31, 2019?

You are auditing the accounts receivable and the related allowance for bad debts account of ONLINE PLATFORM Inc. The control account of the aforementioned accounts had the following balances Accounts Receivable 1,270,000 Less: Allowance for Bad Debts 78,000 Net Book Value 1, 192,000 Upon your investigation, you found out the following information: 1. The company's normal sales term is N/30.| 2. The allowances for bad debt account had the following details in the general ledger: Jan 1 Beginning Balance 30,000 July 31 Write-off 24,000 Dec 31 Provision 72,000 3. The subsidiary ledger balances of the company's accounts receivable as of December 31, 2019 contained the following information Debit Balances Credit Balances Under One Month 540,000 COVID Co. 12,000 One to Six Month 552,000 CORONA Corp 21,000 Over Six Month 228,000 DDS Inc. 27,000 1,320,000 60,000 Additional information: 1. The credit balance with COVID Co. was for an overpayment from the customer. The company has delivered additional merchandise to COVID Co. on January 3, 2020 to cover such overstatement 2. The credit balance of CORRAN Corp was due to posting error, the amount should have been credited to HAYAHAY Co for a 60-day outstanding receivable. 3. The credit balance from DDS Inc. was a cash advance for a delivery to be made on January 14, 2020. 4. It was estimated that 1% of accounts under one month is doubtful of collection while 2% of accounts one-six months are expected to require an allowance for doubtful of collection. The accounts over six months are analyzed as follows:Definitely Uncollectible 72,000 Doubtful (estimated to be 50% of uncollectible) 36,000 Apparently good, but slow (estimated to be 90% collectible 120,000 Total 228,000