The following aging of accounts receivable is for Harry Company at the end of its first year i seeeres of business: 

1. Compute the appropriate Allowance for Bad Debts as of December 31, 2003: 2. Make the journal entry required to record this allowance. Remember that, since this is Harry’s first year of operations, the allowance account at the beginning of the year was $0. 3. What is Harry’s net accounts receivable balance as of December 31, 2003?

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Aging of Accounts Receivable December 31, 2003 Less Than 30 31 to 60 61 to 90 Over 90 Overall Days Days Days Days Ken Nelson $ 10,000 $ 8,000 $1,000 $1,000 Elaine Anderson 40,000 31,000 $ 4,000 5,000 Bryan Crist 12,000 3,000 4,000 2,000 3,000 Renee Warner 60,000 50,000 10,000 Nelson Hsia 16,000 10,000 6,000 Stella Valerio 25,000 20,000 5,000 Totals $163,000 $122,000 $24,000 $8,000 $9,000 Harry Company has collected the following bad debt information from a consultant familiar with Harry's industry: Age of Account Less than 30 days 31-60 days 61-90 days Over 90 days Percentage Ultimately Uncollectible 2% 10 30 75 222