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1)Recievables - bad debts At january 1 2007 the credit balance in the Allowance

Recievables - bad debts

At january 1 2007 the credit balance in the Allowance for Doubtful accounts of the master company was $ 400,000.for 2007 the provision for doubtful accounts is based on a percentage of net sales.Net sales for 2007 were $50,000.Based on the latest available facts,the 2007 provision for doubtful accounts is estimated to be 0 .7 % of net sales.During 2007 uncollectible receivables amounting to $ 410,000 were written off against the allowance for doubtful accounts.

Recquired:

prepare a schedule computing the balance in master's Allowance for doubtful accounts at december 31,2007. show supporting computations in good form.

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