The following aging of accounts receivable is for Coby Company at the end of 2003:

Coby Company had a credit balance of $20,000 in its allowance for bad debts account at the beginning of 2003. Write-offs for the year totaled $16,500. Coby Company makes only one adjusting entry to record bad debt expense at the end of the year. Historically, Coby Company has experienced the following with respect to the collection of its accounts receivable:

1. Compute the appropriate balance of allowance for bad debts as of December 31, 2003. 2. Make the journal entry required to record this allowance for bad debts balance. Remember that the allowance account already has an existing balance. 3. What is Coby’s net accounts receivable balance as of December 31, 2003?

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Aging of Accounts Receivable December 31, 2003 Overall Less Than 30 Days 31 to 60 61 to 90 Over 90 Days Days Days Travis Campbell Linda Reed $ 50,000 35,000 $ 40,000 $ 5,000 $ 2,000 $ 3,000 31,000 4,000 Jack Riding 110,000 100,000 10,000 Joy Riddle 20,000 3,000 10,000 4,000 3,000 Afzal Shah 90,000 60,000 21,000 4,000 5,000 Edna Ramos 80,000 60,000 16,000 4,000 Totals $385,000 $294,000 $66,000 $10,000 $15,000