Susan Smart, the manager of Kitchen Supplies, reports the debit balance in accounts receivable is $315,000 and the credit balance in the allowance for doubtful accounts is $34,500. During 2020 the following occurred. Kitchen Supplies uses a perpetual inventory system. May 31 year end. January 30 Sales for January totaled $35,000 and cost of sales is $15,000. All sales are credit sales. February 8 Aging of accounts receivable indicated the balance for allowance for doubtful accounts should be $40,000. March 1 A few customers indicate they will not be able to pay. The total amount owed by these customers is $15,000. Management authorizes the write-off of these accounts. March 15 Crafts Plus, one of the customers whose account was wrote off on May 1 March 1 paid the amount owed of $3,000. Accepted a $10,000 note from Car Shield in settlement of an accounts receivable. The note bears 6% interest and both the principal and interest and due in three months on July 31. Record interest Car shield paid the amount owed on the note. May 31 July 31 Sales for January totaled $35,000 and cost of sales is $15,000. All sales are credit sales. Date Account Title and Explanation Debit Credit Aging of accounts receivable indicated the balance for allowance for doubtful accounts should be $40,000. Date Account Title and Explanation Debit Credit