The following is a portion of the current assets section of the balance sheets of Avanti's, Inc., at December 31, 2017 and 2016:

	12/31/17	12/31/16
Accounts receivable, less allowance for bad debts of $9,768 and $17,618, respectively	$178,768	$222,213

Required:

a. If $11,786 of accounts receivable were written off during 2017, what was the amount of bad debts expense recognized for the year? (Hint: Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.)

Bad debt expense

b. The December 31, 2017, Allowance account balance includes $3,046 for a past due account that is not likely to be collected. This account has not been written off.

(1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2017?

	Yes
	No

(2) If it had been written off, will there be any effect of the write-off on Net income and ROI for the year ended December 31, 2017?

	Yes
	No

c. The level of Avanti's sales in 2017 were probably lower as compared to 2016.

	True
	False