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Arizona Company reported accounts receivable of $21,200,000 at the end of its 2009 fiscal year. This amount was net of an allowance for doubtful accounts of $1,456,000. During 2010, Georgia sold $72,300,400 of merchandise on credit. It collected $48,520,555 from customers. Accounts valud at $2,125,000 were written off as uncollectible during 2010. Arizona's management estimates that 8% of the year-end accounts receivable balance wiill be uncollectible.
a. What amount will Arizona report for accounts receivable? Show computations.
b. What is the balance for the allowance for doubtful accounts at the end of 2010? (round to whole numbers) Show computations.
c. What is the doubtful accounts expense or 2010? Show computations.
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