Brief Exercise 7-14 (Algo) Uncollectible accounts; balance sheet approach [LO7-5, 7-6] The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $380,000; allowance for uncollectible accounts at the beginning of the year, $27,000 (credit balance); credit sales during the year, $1,350,000; accounts receivable written off during the year, $18,000; cash collections from customers, $1,250,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the allowance for uncollectible accounts. 1. Bad debt expense 2. Ending balance

Brief Exercise 7-14 (Algo) Uncollectible accounts; balance sheet approach [LO7-5, 7-6] The following information relates to a company's accounts receivable: gross accounts recelvable balance at the beginning of the year $380,000; allowance for uncollectible accounts at the beginning of the year, $27,000 (credit balance); credit sales during the year, $1,350,000; accounts recelvable written off during the year, $18,000; cash collections from customers, $1,250,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the allowance for uncollectible accounts