Smith & sons uses the allowance method of handling its credit losses. It estimates credit losses at two percent of credit sales, which wer $2,000,000 during the year. On December 31, the Accounts Receivable balance was $300,000m and the Allowance for Doubtful Accounts had a credit balance of $21,400 before adjustments.

show how accounts receivable and the allowance for doubltful accounts would apper in the december 31 balance sheet.