Colorado Rocky Cookie Company offers credit terms to its
customers. At the end of 2018, accounts receivable totaled
$640,000. The allowance method is used to account for uncollectible
accounts. The allowance for uncollectible accounts had a credit
balance of $35,000 at the beginning of 2018 and $22,500 in
receivables were written off during the year as uncollectible.
Also, $1,500 in cash was received in December from a customer whose
account previously had been written off. The company estimates bad
debts by applying a percentage of 10% to accounts receivable at the
end of the year. Required:

1. Prepare journal entries to record the write-off of
receivables, the collection of $1,500 for previously written off
receivables, and the year-end adjusting entry for bad debt
expense.

2. How would accounts receivable be shown in the 2018 year-end
balance sheet?