Allowance method for uncollectible accounts. Diversified Technologies opened for business on January 2, Year 1. Sales on accounts during Year 1 totaled $126,900. Collections from customers from sales on account during Year 1 totaled $94,300. Diversified Technologies estimates that it will ultimately not collect 4 percent of sales on account. During Year 1 , the firm wrote off

$2,200 of accounts receivable as uncollectible. The firm uses the allowance method for uncol- lectible accounts.

a. Compute the amount of bad debt expense for Year 1 .

b. Compute the net amount at which accounts receivable will appear on the balance sheet on December 3 1 , Year 1 .