The hotel charges 150 per night for accommodation in one of the rental suites, and guests pay at the end of their stay, with daily revenue being accrued as it is earned. At December 31,the amount outstanding from shortterm guests was 10,500. At year end, management expects to be unable to collect an amount equal to 5% of the outstanding receivables for this type of suite. During the year, sales amounted to 1,750,000, and the balance in Allowance for Doubtful Accounts at the end of the previous year was 15,000. During the year, $32,000 in accounts was written off. The two corporate suites are rented for 45,000 per year. The payment for these longerterm rentals is due in advance each July 1 for the following 12 months. One of these corporate suites has been in use for part of the year, but the corporate tenant went bankrupt and was unable to pay the 45,000 fee. Hotel management had hoped the tenant would eventually be able to pay, and it allowed the company to use the suite until the end of October. Since then, the hotel has been in negotiations with the bankruptcy accountant and expects to eventually receive a settlement of $10,000. The balance will become uncollectible; no allowance for doubtful accounts has been recorded with respect to these suites as there have never been collection problems in the past.

Calculate the accounts receivable, allowance for doubtful accounts, and bad debt balances as at December 31. Show Calculations in the following format.

What i have so far, please help what is desired ending balance????

Accounts receivable:

Short Term

Accrued (given) 10500 -525

Suites

Amount expected to be collected - corporate 10000

Total 19975

Allowance for doubtful accounts

Opening balance=15000

Accounts written off during year = 32000

Balance before adjustment = 47000 or -17000 ?????

Desired ending balance = ???????

Adjustment needed = ???

Bad Debt expense

Adjustment to obtain desired ending balance in Allowance for doubtful accounts = ??

Uncollectible amount on suite = 35000

Ending balance