The Concord Pub provides catering services to local businesses. The following information was available for The Concord Pub for the years ended December 31,2016 and 2017. December 31, 2016 December 31, 2017 1,840 $ Cash Accounts receivable Allowance for doubtful accounts Other current assets Current liabilities Total credit sales Collections on accounts receivable 1,710 46,100 560 8,260 36,300 202,000 195,000 8,040 44,300 257,000 228,000 Concord management is preparing for a meeting with its bank concerning renewal of a loan and has collected the following information related to the above balances The cash reported at December 31,2017, reflects the following items: petty cash $1,590 and postage stamps $120. The other current assets balance at December 31,2017, includes the checking account balance of $3,870. On November 30, 2017, Concord agreed to accept a 6-month, $ 4,950 note bearing 12% interest, payable at maturity, from a major client in settlement of a $4,950 bill. The above balances do not reflect this transaction. Concord factored some accounts receivable at the end of 2017. It transferred accounts totaling $ 10,000 to Final Factor, Inc. with recourse. Final Factor will receive the collections from Concord's customers and will retain 2% of the balances. Final Factor assesses Concord a finance charge of 3% on this transfer. The fair value of the recourse liability is $ 390. However, management has determined that the amount due from the factor and the fair value of the resource obligation have not been recorded, and neither are included in the balances above. 1. 2, 3. 4. Concord charged off uncollectible accounts with balances of $1,620. On the basis of the latest available information, the 2017 provision for bad debts is estimated to be 2.5% of accounts receivable