-1) The following is the Summary of Aged Accounts Receivable List as at December 31, 2016

Total

Receivables

Current

(not overdue)

Overdue 1-30

days

Overdue 31-60

days

Overdue 61-

90 days

Overdue > 90

days

$897,000

$325,000

$228,000

$174,000

$128,000

$42,000

1% is

estimated to

be

uncollectable.

5% is

estimated to

be

uncollectable.

10% is

estimated to be

uncollectable.

15% is

estimated to

be

uncollectable.

20% is

estimated to

be

uncollectable.

On December 30, 2016, the company wrote off a total amount of $100,000 accounts receivable.

On December 31, 2016, the unadjusted balance in the Allowance for doubtful accounts is a debit

balance of $54,000.

Assume the company uses the allowance account method for bad debts based on the Summary of

Aged Accounts Receivable List. The company does not estimate the uncollectible percentage

based on the total outstanding receivables. Rather, the company applies different percentages

depending on the aging of Accounts Receivable, as shown in the Summary of Aged Accounts

Receivable List. What should be the bad expense amount that should be reported on the income

statement ended on December 31, 2016