Manilow Corporation operates in an industry that has a high rate of bad debts.

Before any yearend adjustments, the balance in Manilow's Accounts Receivable account was $595,400 and the
Allowance for Doubtful Accounts had a credit balance of $42,200. The year-end balance reported
in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule
shown below.

Days Account Outstanding

Amount

Less than 16 days

Probability of
Collection

$314,700

0.97

Between 16 and 30 days

115,300

0.90

Between 31 and 45 days

81,100

0.86

Between 46 and 60 days

44,000

0.82

Between 61 and 75 days

22,700

0.56

Over 75 days

17,600

00

Assume that accounts with a zero percent chance of collection are intended to be written off.

(a)
What is the appropriate balance for Allowance for Doubtful Accounts at year-end?
Balance for Allowance for Doubtful Accounts

(b)

The parts of this question must be completed in order. This part will be available when you
complete the part above.

(c)

The parts of this question must be completed in order. This part will be available when you
complete the part above.