Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2018, accounts receivable totaled $635,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $34,000 at the beginning of 2018 and $22,000 in receivables were written off during the year as uncollectible. Also, $1,400 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year.

Required: 1. Prepare journal entries to record the write-off of receivables, the collection of $1,400 for previously written off receivables, and the year-end adjusting entry for bad debt expense.

2. How would accounts receivable be shown in the 2018 year-end balance sheet?