Walter & Company has produced the following detailed aging of outstanding accounts receivable as at December 31, 2009.

Age (days)	$Amount Due	Probability of collection.
0 - 30	400,000	90%
31 60	200,000	75%
61 - 90	300,000	50%
91 - 180	100,000	25%
Over 180	200,000	10%

Required:

(a) Prepare an aging analysis and show how accounts receivable and the related allowance for doubtful accounts would appear in the balance sheet at December 31, 2009.

(b) Prepare the necessary journal entry to update the allowance for doubtful accounts assuming that the balance prior to preparing the aging was a credit of $100,000.

(c) One of the customers, Janet, who was in the Over 180 days category owed $60,000. On January 15, 2010, it was revealed that Janet was officially declared bankrupt and would only be able to repay a quarter of what she owed to any company. Prepare the journal entry to write off Janets uncollectible debt.

On January 31, 2010, Janet won the lottery and on the same day she decided to repay all of her original debts to everyone whom she owed money. Prepare the journal entry to record Walters unexpected receipt of Janets payment.