A large corporation recently reported the following amounts on its year-end balance sheets:

A footnote to these statements indicated that the company uses a percentage of its credit sales to determine its bad debts expense, that $60,000 of uncollectible accounts were written off during 2011 and $80,000 of uncollectible accounts in 2012 and that there were no recoveries of accounts written off.
a. Determine the amount of bad debts expense that must have been recorded by the company for 2012.
b. How were the company's net receivables affected by the write-off of the $80,000 of accounts in 2012?
c. How was the company's net earnings affected by the $80,000 write-off of accounts in 2012?

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2011 2012 Accounts receivable Allowance for doubtful accounts $8,400,000 $8,800,000 95,000 105,000