Pessimist Inc. had credit sales totalling $4,900,000 and $5,100,000 for the years ended December 31, 2020 and 2021, respectively. Information on trade accounts receivable for the company is presented below: 

The balance of the allowance for doubtful accounts as of January 1, 2020, was $5,000. In addition, you learn that the company wrote off specific accounts of $6,500 in 2020, and the bad debts expense was $8,000 in 2021. 

Required:

a. Determine the bad debts expense for 2020.

b. Determine the amount of receivables written off during 2021.

c. Prepare the journal entry to record the bad debts expense for 2020.

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Balance in accounts receivable, December 31, 2020 Balance in accounts receivable, December 31, 2021 % of receivables estimated to be uncollectible Days outstanding from invoice date Current 30-60 61-90 Over 90 $400,000 $150,000 $40,000 $10,000 440,000 0.5% 160,000 1% 30,000 2% 20,000 5%