At the end of the prior year, Company reported the following information: Accounts Receivable (Gross) were $125,000 and Allowance for Doubtful Accounts were $2,400.
During the current year, sales on account were $150,000, collections on account were $165,000, write-off of bad debts were $6,500, and the bad debt expense adjustment was $5,500.
Show how the amounts related to Accounts Receivable would be reported on the balance sheet for the current year. Disregard income tax considerations.