In its 2017 financial report, Sound Unlimited reported the following items:
1. A credit balance of $200,000 in allowance for doubtful accounts.
2. A debit balance of $7,500,000 in accounts receivable.
3. Sales of $3,250,000.

During 2017, the company was involved in the following transactions that affected allowance for doubtful accounts.
1. Wrote off accounts considered un-collectible totaling $195,000.
2. Recovered $45,000 that had previously been written off.

Assume that historically 5 percent of sales has proven to be un-collectible.
a. Compute the December 31, 2016, balance in allowance for doubtful accounts.
b. Assume that all sales were on credit and cash collections from customers during 2017 totaled $4,200,000.
Compute the 12/31/16 balance in accounts receivable.