Bad Debt Problems No. 3 {15 Points} At December 31, 2018, retailer Lord & Sailor had a balance of $82,700 in its Accounts Receivable account and a credit balance of $280 in its Allowance for Doubtful Accounts account. The company analyzed and aged its accounts receivable based on the following estimated uncollectible amounts:

Age of Accounts. Receivables Balance Estimated % Uncollectible

Current $43,500 0.6%

31 to 60 day 22,100 2.2%

61 to 90 days 8,900 5.4%

Over 91 days 8,200 21.0%

Total $82,700

The company bases its provision for credit losses on the aging analysis.

Required:

a. What amount of bad debt expense will Lord & Sailor report in its 2018 income statement? Round all your calculations to the nearest dollar.

b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in Lord & Sailors December 31, 2018, balance sheet?