3. The following data are from companys records for 2013: Accounts receivableJanuary1, 2013 $224,000 Credit sales during 2013 3,100,000 Collections from credit customers during 2013 3,015,000 Customer accounts written off as uncollected during 2013 6,000 Allowance for doubtful accountsJanuary 1, 2013 6,700 Estimated uncollected accounts based on an aging analysis 7,200

If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2013? What is the balance of accounts receivable at 12/31/2013?

If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense for 2013?