4. At the end of its first year of operations, December 31, 2014, Darden Inc. reported the following information.

Accounts receivable, net of allowance for doubtful accounts		$944,600
Customer accounts written off as uncollectible during 2014		28,900
Bad debt expense for 2014		87,500

What should be the balance in accounts receivable at December 31, 2014, before subtracting the allowance for doubtful accounts?

5. The following accounts were taken from Bullock Inc.s trial balance at December 31, 2014.

		Debit		Credit
Net credit sales				$750,200
Allowance for doubtful accounts		$12,800
Accounts receivable		341,500

If doubtful accounts are 2% of accounts receivable, determine the bad debt expense to be reported for 2014.