"A large corporation recently reported the following amounts on its year-end statements of financial position:

2016

A/R 8800000

AFDA 105000

2015

A/R 8400000

AFDA 95000

A footnote to these statements indicated that the company uses a percentage of its credit sales to determine its bad debts expense, that $60,000 of uncollectible accounts were written off during 2015 and $80,000 of uncollectible accounts were written off in 2016, and that there were no recoveries of accounts written off.

Required:

a. Determine the amount of bad debts expense that must have been recorded by the company for 2016.

b. How were the companys net receivables affected by the writeoff of the $80,000 of accounts in 2016?

c. How was the companys net earnings affected by the $80,000 writeoff of accounts in 2016?