Response to the following questions:
1. What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?
2. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $783,150 and Allowance for Doubtful Accounts has a balance of $41,694.
Describe how the accounts receivable and the allowance for doubtful accounts are reported on the balance sheet.