Name: Date: Instructor: Course: Intermediate Accounting, 15h Edition by Kleso, Weygandt, and Warfield P7-3 (Bad-Debt Reporting-Aging) 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 $575,000 and the Allowance for Doubtful Accounts had a credit balance of $40,000 The year-end balance reported in the balance sheet for the Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days Amount $300,000 120,000 80,000 40.000 20,000 15,000 Probability of Collection 0.98 0.90 0.85 0.80 0.55 0.00 Instructions: (a) What is the appropriate balance for the Allowance for Doubtful Accounts at the year-end? Days Account Outstanding 10-15 days 16 - 30 days 31-45 days 46 - 60 days 61 - 75 days Over 75 days Amount $300,000 120,000 80,000 40,000 20,000 15.000 Probability of Collection 0.98 0.90 0.85 0.80 0.55 0.00 Doubtful Acets: Formula Formula Formula Formula Formula Formula Formula Enter text answer here. (b) Show how Accounts Receivable would be presented on the balance sheet Account Title Less: Account Title Text Title Amount Amount Formula 3 (c) What is the dollar effect of the year-end bad debt adjustment on the bofore-tax income? Enter text answer as desired here 5 8 Amount Text Title Text explanation as required. B Amount Formula Text Title