Question 7 Concord Corporation had record sales in 2020. It began 2020 with an Accounts Receivable balance of $490,000 and an Allowance for Doubtful Accounts of $36,000. Concord recognized credit sales during the year of $6,665,000 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 $36,500 of accounts that were deemed to be uncollectible, although one customer whose $4,300 account had been written off surprised management by paying the amount in full in late September. Including this surprise receipt, $6,530,000 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: Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days Amount $313,300 120,000 79,000 37,800 18,400 24,300 $592,800 Probability of Collection 98% 91% 80% 71% 52% 0% Reconcile the 2020 opening balance in Accounts Receivable to the $592,800 ending balance on the controller's aged listing. Accounts Receivable Reconciliation Opening balance 490000 Credit sales in year 6665000 Reinstatement of account collected 4300 Accounts written off 36500 Cash collected on account 6530000 Ending balance 592800 Prepare the adjusting entry to bring the Allowance for Doubtful Accounts to its proper balance at year end. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "o" for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 Bad Debt Expense Allowance for Doubtful Ace