Riverbed Corp.s balance sheet at December 31, 2016, included the following.

Note receivable				$700,000
Interest receivable				36,000
Accounts receivable		1,420,000
Less: Allowance for doubtful accounts receivable		89,000		1,331,000
				$2,067,000

The following occurred in 2017.

1.		Riverbed made sales of $10,700,000. All sales were credit sales. Riverbed allows some discounts for early payment of receivables and uses the gross method to record sales.
2.		Customer accounts of $82,000 were written off during the year.
3.		Accounts receivable of $10,800,000 were collected. Collections for the year included $300,000 of accounts on which 1% sales discounts were allowed.
4.		$12,500 was received in payment of an account which was written off the books as worthless in 2016.
5.		At year-end (December 31, 2017), Riverbed estimated that its Allowance for Doubtful Accounts needed a balance of $75,000. This estimate is based on an analysis of aged accounts receivable.
6.		The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date.

No. Account Titles and Explanation Debit Credit 1. Accounts Receivable 10,700,000 Sales Revenue 10,700,000 Allowance for Doubtful Acc 89.000 Accounts Receivable 89,000 3. cash Cash 10,700,000 Sales Discounts 3,000 Accounts Receivable 10,706,000 Cash 12,500 Bad Debt Expense 2,500 (To record entry to reinstate the accounts receivable) (To record the collection on account) 4. Cash 12,500 2,500 Bad Debt Expense (To record entry to reinstate the accounts receivable) (To record the collection on account) 5. Loss on Sale of Receivable 82,000 Allowance for Doubtful 82,000 6. I Cash 736,000 Notes Receivable 700,000 Interest Receivable 36,000 Click if you would like to Show Work for this question: Open Show Work