Current Attempt in Progress

Early in January $2026,$ Vaughn Company is preparing for a meeting with its bankers to discuss a loan request. Its bookkeeper provided

the following accounts and balances at December $31,2025.$

Except for the following items, Vaughn has recorded all adjustments in its accounts.

Cash includes $$500$ petty cash and $$14,500$ in a bond sinking fund.

Net accounts receivable is comprised of $$52,940$ in accounts receivable and $$12,940$ in allowance for doubtful accounts.

Equipment had a cost of $$121,240$ and accumulated depreciation of $$29,010.$

On January $8,2026,$ one of Vaughn' customers declared bankruptcy. At December $31,2025,$ this customer owed Vaughn

$$8,740.$