Accounting Scenerio Question.

[DemoDreamer]

I've been given an accounting scinerio that I'm not 100% sure on. If a company has an allowance account of $45,000 lower than the actual year end estimated doubtful accounts. The allowance again is $45,000 lower than the estimated amount of doubtful accounts. What is the best way to correct this error in the finacial statements? or how would you handle this? Also; there have been no payments on recievables done through the year and there was an increase of $60,000 from the prior year. How do you make the books match the same for recievables as the prior year? Make a large payment to make up the difference? Any help is apprieciated.
-Amy