The following aging of accounts receivable is for Coby Company at the end of 2012:

Coby Company had a credit balance of $20,000 in its allowance for bad debts account at the beginning of 2012. Write-off s for the year totaled $16,500. Coby Company makes only one adjusting entry to record bad debt expense at the end of the year. Historically, Coby Company has experienced the following with respect to the collection of its accounts receivable:
Percentage Ultimately
Age of Account Uncollectible
Less than 30 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1%
31€“60 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
61€“90 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Over 90 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Required:
1. Compute the appropriate balance of Allowance for Bad Debts as of December 31, 2012.
2. Make the journal entry required to record this allowance for bad debts balance. Remember that the allowance account already has an existing balance.
3. What is Coby€™s net accounts receivable balance as of December 31,2012?

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Aging of Accounts Receivable December 31, 2012 Less Than 30 Days 31 to 60 Days 61 to 90 Over 90 Days Overal Travis Campbell Linda Reed Jack Riding Joy Riddle Afzal Shah Edna Ramos Totals S 50,000 S 40,000 S 5,000 S 2,000 3,000 8 3,000 5,000 4,000 S385,000 $294,000 $66,000 $10,000 $15,000 35,000 110,000 20,000 90,000 80,000 31,000 100,000 3,000 60,000 60,000 4,000 10,000 10,000 21,000 16,000 ,000 4,000