2&3) The following summary was prepared at 12/31/20: Age of Account Amount Probability of Default 0-30 days $75,000 2% 31 -60 days 25,000 10% 61 - 90 days 10,000 25% Over 90 days 6,000 80% The following additional information is available: Net sales in 2020 $1,200,000 Allowance for doubtful accounts, 1/1/20 $10,000 credit Accounts written off during 2020 $8,000 Recoveries of write-offs in 2020 $1,000 2. If aging of A/R is used as the basis for estimating bad debt, what will be reported as bad debt expense in 2020? a) $11,300 b) $12,000 c) $8,300 d) $15,000 3. If 1% of 2020 sales is used as the basis for estimating bad debt, what will be the balance in A/D/A as of 12/31/20? a) $15,000 b) $12,000 c) $8,300 d) $11,300