1. Sage Co. provides for doubtful accounts based on 4% of gross accounts receivable, The following data are available for 2017.

Credit sales during 2017		$4,244,100
Bad debt expense		57,800
Allowance for doubtful accounts 1/1/17		16,450
Collection of accounts written off in prior years (customer credit was reestablished)		7,250
Customer accounts written off as uncollectible during 2017		32,230

What is the balance in Allowance for Doubtful Accounts at December 31, 2017?

2. Explain the difference between bad debt expense, write offs and allowance for doubtful accounts. How can you find one from the other two?