Chapter 22, Problem 22.26BE

Complex Transactions, Change in Accounts Receivable. Donegal Industries reported net income of $67,000 for the current year The balances and activity in its accounts receivable accounts follow In addition, the company recorded $3,300 of bad debt expense and wrote off $2,800 of uncollectible accounts.

Accounts	End of Year	Beginning of Year
Accounts Receivable	$39,000	$43,000
Allowance	3,500	3,000
Activity
Bad Debt Expense	$ 3,300
Write-Offs	2,800

Required

Prepare the operating section of the cash flow statement under the indirect method.