Estimates of Uncollectible Accounts Rashid Company has made an analysis of its sales and accounts receivable for the past 5 years. Assume all accounts written off in a year related to sales of the preceding year and were part of the accounts receivable at the end of that year. That is, no account is written off before the end of the year of the sale, and all accounts remaining unpaid are written off before the end of the year following the sale. The analysis showed: Ending Sales Accounts Receivable Bad Debts Written Off During the Year 20X1 $680,000 $ 90,000 $12,000 20X2 750,000 97,000 12,500 20X3 750,000 103,000 14,000 20X4 850,000 114,000 16,500 20X5 840,000 110,000 17,600 The balance in Allowance for Uncollectible Accounts on December 31, 20X4, was $15,900.

1. Determine the bad debts expense for 20X5 and the balance of the Allowance for Uncollectible Accounts for December 31, 20X5, using the percentage of sales method. 2. Repeat requirement 1 using the percentage of ending accounts receivable method.