26. Sullivan Co.'s accounts receivable show the following balances by age: Age of Receivable Balance 0-30 days $600,000 31-60 days 175,000 61-120 days 70,000 more than 120 days 10,000 The credit balance in the allowance for uncollectible accounts is $2,500. Sullivan Co. uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 0.7%; 31-60 days, 1.2%; 61-120 days, 11%; and more than 120 days, 65%. a) Compute the balance in the allowance for doubtful accounts at year end b) Compute the bad debt expense for the year