1. SDLI, Inc. grants its customers 30 days credit. The company uses the allowance method for its uncollectible accounts receivable. During the year , a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly.

At the end of 2015, accounts receivable were $1,250,000 and the allowance account had a credit balance of

$106,000. Accoun.ts receivable activity for 2016 was as follows:

Beginning balance	$1,250 ,000
Credit sales	3,800,000
Collections	(3,745,000)
Write-offs	(82,000)
Ending balance	$1,223 ,000

The company's controller prepared the following aging summary of year-end accounts receivable:

	Summary Percent Age Group Amount Uncollectible
	0-60 days	$ 825,000	2%
	61-90 days	220,000	10%
	91-120 days	50,000	30%
	Over 120 days	128,000	40%
	Total	$ 1,223 000
Required:

< >record the monthly bad debt accrual and the write-offs during the year.

< >bad debt expense.

What is total bad debt expense for 2016? What is the Net Realizable Value of Accounts Receivable on the balance sheet?