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In: AccountingOption #1: Bad DebtsPaisley Corporation operates in an industry that has a high rateof...Option #1: Bad DebtsPaisley Corporation operates in an industry that has a high rateof bad debts. The year-end balance reported in the balance sheetfor the Allowance for Doubtful Accounts will be based on the agingschedule shown below:Days Account OutstandingAmountProbability of Not CollectingLess than 16 days$351,600.03Between 16 and 30 days122,400.11Between 31 and 45 days84,000.17Between 46 and 60 days66,000.24Between 61 and 75 days33,600.40Over 75 days$ 9,600.70Before year-end adjustments, Chatter’s Allowance for DoubtfulAccounts had a debit balance of $6,000.What is the appropriate balance for the Allowance for DoubtfulAccounts at year-end?Show how accounts receivable would be presented on the balancesheet.What is the dollar effect of the year-end bad debt adjustment onthe before-tax income?Your well-written paper must be 2 to 3 pages in length. Cite atleast three peer-reviewed sources, in addition to the requiredreadings for this module. Please provide a detailed answer. Thanksin advance.