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, $500,000; allowance for uncollectible accounts at the beginning of the year, $39,000 (credit balance); credit sales during the year, $1,950,000; accounts receivable written off during the year, $30,000; cash collections from customers, $2,100,000. Assuming the company estimates that future bad debts will equal 12% 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.

Brief Exercise 7-14 (Algo) Uncollectible accounts; balance sheet approach [ LO 75,76] The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $500,000; allowance for uncollectible accounts at the beginning of the year, $39,000 (credit balance); credit sales during the year, $1,950,000; accounts receivable written off during the year, $30,000; cash collections from customers, $2,100,000. Assuming the company estimates that future bad debts will equal 12% 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