The accounts receivable balance for City Shoe Repair at December 31, 2006, was \($84,000\) . Also on that date, the balance in the Allowance for Doubtful Accounts was \($2,400\). During 2007, \($2,100\) of accounts receivable were written off as uncollectible. In addition, City Shoe Repair unexpectedly collected \($150\) of receivables that had been written off in a previous accounting period. Sales on account during 2007 were \($218,000\), and cash collections from receivables were \($220,000\). Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period.

Required:

a. Organize the information in accounts under an accounting equation.

b. Based on the preceding information, compute (after year-end adjustment):
(1) Balance of Allowance for Doubtful Accounts at December 31, 2007.
(2) Balance of Accounts Receivable at December 31, 2007.
(3) Net realizable value of Accounts Receivable at December 31, 2007.

c. What amount of uncollectible accounts expense will City Shoe Repair report for 2007?

d. Explain how the \($150\) recovery of receivables affected the accounting equation.