M8-16 (Supplement 8A) Recording Write-Offs and Reporting Accounts Receivable Using the Direct Write-Off Method [LO 8-S1) On December 31, 2017, Extreme Fitness has an adjusted balance of $810,000 in Accounts Receivable On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $56,700. Extreme Fitness uses the direct write-off method. a. What amount would the company report as its net accounts receivable on December 31, 2017? b. Prepare the journal entry to write off the accounts on January 2, 2018 C. Assuming no other transactions occurred between December 31, 2017, and January 3, 2018, what amount would the company report as its net accounts receivable on January 3, 2018? Has net accounts receivable changed from December 31, 2017