Baz corp. is a jewelry company that sells custom rings. At the beginning of the year, their customers owed them $2,500,000 but they estimated about $300,000 would not actually be collected. At the end of the year, their customers owed them $2,550,000 and estimated $550,000 would not be collected. What amount would they present for accounts receivable on their year end balance sheet?

Continuing with Baz corp, recall at the beginning of the year, their customers owed them $2,500,000 and they had an allowance for doubtful accounts of $300,000. At the end of the year, their customers owed them $2,550,000 and they had an allowance for doubtful accounts of $550,000. What was bad debt expense for this year?