The following information relates to Shari Inc.$\text{'}$s Accounts Receivable for the $2017$ fiscal

year:

An aging schedule of the accounts receivable as at December $31,2017$ is as

follows:

The Accounts Receivable control account has a debit balance of $$372,400$ on

December $31,2017.$

Two entries were made to Bad Debts Expense account during the year: $(1)$ a

debit on December $31$ for the amount credited to Allowance for Doubtful

Accounts, and $(2)$ a credit for $$2,740$ on November $3,2017$ and a debit to

Allowance for Doubtful Accounts because of a bankruptcy.

Allowance for Doubtful Accounts is as follows for $2017$:

Allowance for Doubtful Accounts

There is a credit balance in Accounts Receivable $(61-90$ days$)$ or $$4,840,$ which

represents an advance on a sales contract.

Instructions:

Assuming that the books have not been closed for $2017,$ make the necessary

correcting entries.