At the close of its first year of operations, December 31, 2010, Ming Company had accounts receivable of $540,000, after deducting the related allowance for doubtful accounts. During 2010, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of $40,000. What should the company report on its balance sheet at December 31, 2010, as accounts receivable before the allowance for doubtful accounts?

I got $670,000?

All you have to do is prepare a T account. Since this is the first year there will not be an opening balance in the allowance account. Charge to income statement will be credited to this account and the write offs will be debited. The balancing figure is the allowance for doubtful debts which has already been deducted from the gross receivables.