2. Allowance For Uncollectible Accounts The following information relates to a companys accounts receivable at the end of the year.

accounts receivable balance at the beginning of the year, $300,000;

an allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance);

credit sales during the year, $1,500,000;

accounts receivable written off during the year; $16,000,

Cash collections from customers; $1,450,000.

1. Assuming the company estimates bad debts at an amount equal to 2% of credit sales;

Calculate (a) bad debt expense for the year and (b) the year-end balance in the allowance for uncollectible accounts.

2. Assuming the company estimates bad debts will equal 10% of the year-end balance in accounts receivable.

Calculate (a) bad debt expense for the year and (b) the year-end balance in the allowance for uncollectible accounts.

3. Prepare the journal entry to write off an uncollectible account on January 31 year 2 for $1,200.