Month 1—Payments of $35,000 were received on accounts receivable with a book value of $43,000, and the balance of those accounts were written off. A $12,000 allowance for uncollectible accounts was...

Month 1—Payments of $35,000 were received on accounts receivable with a book value of $43,000, and the balance of those accounts were written off. A $12,000 allowance for uncollectible accounts was established against the remaining receivables. Inventory with a book value of $70,000 was returned to vendors in exchange for full satisfaction of $62,000 of accounts payable. It was decided that a minimum cash balance of $5,000 should be maintained at month-end.