Problem $2.$ Bad$-$Debt Reporting Allowance Method Aging of Accounts Receivables $$ Moby Corporation unfortunately has a high rate of bad debts. Before any year$-$end adjustments, the balance in Moby$$s Accounts Receivable account was $$555,000$ and Allowance for Doubtful Accounts showed a credit balance of $$40,000$ before the adjustment for bad debt. The year$-$end balance reported in the balance sheet for Allowance for Doubtful Accounts is based on the aging schedule shown below.$$ Probability of Days Account Outstanding $$ Amount$$Collection$$ Less than $16$ days $$ $$300,000\mathrm{.}98$ Between $16$ and $30$ days $100,000\mathrm{.}90$ Between $31$ and $45$ days $80,000\mathrm{.}85$ Between $46$ and $60$ days $40,000\mathrm{.}80$ Over $61$ days$35,000\mathrm{.}50$ Instructions $2\mathrm{.}1$ What is the appropriate balance for Allowance for Doubtful Accounts at year$-$end? $2\mathrm{.}2$ Prepare the journal entry$($s$)$ needed to adjust the balances to the correct amounts. $2\mathrm{.}3$ Show how the accounts receivable are presented on the balance sheet $($hint: should be $3$ lines$).$