Wildhorse Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Wildhorse's Accounts Receivable account was $595,600 and Allowance for Doubtful Accounts had a credit balance of $40,350. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $314,500 0.97 Between 16 and 30 days 119,900 0.90 Between 31 and 45 days 84,800 0.85 Between 46 and 60 days 43,000 0.82 Between 61 and 75 days 19,800 0.53 Over 75 days (to be written off) 13,600 0.00 x Your answer is incorrect. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? $ Balance for Allowance for Doubtful Accounts 64,791 eTextbook and Media Your answer is partially correct. Show how accounts receivable would be presented on the balance sheet. WILDHORSE CORPORATION Balance Sheet (Partial) 595600 Accounts Recelvable Allowance for Doubtful Accounts 64,791 Less 530,809 Net Accounts Recelvable eTextbook and Media Your answer is correct What is the dollar effect of the year-end bad debt adjustment on the before-tax income? Dollar effect of the year-end bad debt adjustment S decrease $24,441