Below is a portion of "ABC" Statement of Financial Position as of 31/12/x1:

Current Assets:

Cash $100,000

Accounts Receivable

$60,000

Allowance for Doubtful accounts 6,000

During x2 the following information was gathered from their financial records:

Total Sales Revenue $100,000

Sales Return and Allowance $2,000

Sales Discount $3,000

Accounts Receivable that were actually written off $5,000

Accounts Receivable that had been recovered $500

Accounts Receivable as on 31/12/x2 150000

Based on the above-given information, answer the following questions, assuming the company is using 10% of accounts recivable:

What is the Bad Debt Expense Balance that must be presented on the income statement for the year x2? Answer for part 1

What is the allowance for doubtful that must be presented on the statement of financial position as 31/12/x2?