Accounting for Uncollectible Accounts Receivable Dodge Company had the following information relating to its accounts receivable at December 31, 2008, and for the year ended December 31, 2009:

Dodge Company uses the percentage of receivables method to estimate bad debt expense.
1. At December 31, 2009, what is the balance of Dodge Company’s Allowance for Bad Debts? What is the bad debt expense for 2009?
2. At December 31, 2009, what is the balance of Dodge Company’s gross accounts receivable?

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Accounts receivable balance at 12/31/08 Allowance for bad debts at 12/31/08 (credit balance) Gross sales during 2009 (all credit) Collections from customers during 2009 Accounts written off as uncollectible during 2009 Estimated uncollectible receivables at 12/31/09 $ 900,000 50,000 5,000,000 4,500,000 60,000 110,000