14 Uncollectible receivables LO2, 3 At 31 December, Duong Designers had gross accounts receivable of $346000. Historically, Duong's Designers has estimated bad debt expense as 3 per cent of gross receivables. REQUIRED Calculate bad debt expense for the year, assuming that the allowance account currently has a credit balance of $5000. Again, calculate the expense assuming a debit balance of $1200. b Assume that on 29 December an account receivable of $1000 was deemed uncollectible and written off. Prepare the journal entry to record this event. What effect does this have on (i) profit or loss this financial year (ii) the net realisable value of receivables