A summary of Klugman Company accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group:

Account age

Probability of non collection

Amount owned

0-30 days 0.50% 725,000

31-60 days 1.50% 275,000

61-90 2.50% 170,000

91-120 4.0% 100,000

120 20.% 40,000

A balance of $800 existed in the Allowance for Uncollectible Accounts account as of the beginning of the year.

Determine the amount of bad debt expense to be recorded at year-end by the company under the aging method.

Calculate the net realizable value of the companys accounts receivable at year-end.