The remaining questions relate to the following presentation in the balance sheets of HiROE Co. at December 31, 2017 and 2016:

12/31/17 12/31/16

Accounts receivable, less allowance for uncollectible $487,000. $406,000 accounts of $12,000 and $4,000 repsectively

a. Describe how the allowance amount at December 31, 2017 was most likely determined.

b. If the bad debt expense for 2017 totaled $14,000, what was the amount of accounts receivable written off during the year? (Hint: Using the T account model of the allowance account, plug in the three amounts that you know and then solve for the unknown.)

c. The December 31, 2017 allowance account balance includes $3,500 for a past due account that is not likely to be collected. This account has not been written off. If it had been written off, what would have been the effect of the write off on: 1. Working capital at December 31, 2017? 2. Net income and ROI, for the year ended December 31, 2017?

d. What do you suppose was the level of HiROE's sales in 2017, compared to 2016?