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

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Accounting

Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Manilow's Accounts Receivable account was $555,000 and Allowance for Doubtful Accounts had a credit balance of $40,000. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below.
\table[[Days Account Outstanding,,Amount,,\table[[Probability of],[Collection]]],[Less than 16 days,,$300,000,,0.98],[Between 16 and 30 days,,100,000,,0.90],[Between 31 and 45 days,,80,000,0.85,],[Between 46 and 60 days,,40,000,0.80,],[Between 61 and 75 days,20,000,0.55,,],[Over 75 days (to be written off),15,000,0.00,,]]
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