Current Attempt in Progress

The records of Martinez Company at the end of the current year show Accounts Receivable $$77,400,$ Credit Sales $$810,000,$ and Sales

Returns and Allowances $$40,000.$

$($a$)$ If Martinez uses the direct write$-$off method to account for uncollectible accounts and Martinez determines that Matisse's

$$900$ balance is uncollectible, what will Martinez record as bad debt expense?

Bad debt expense $

$($b$)$ Assume Martinez uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful Accounts has a

balance of $$1,100$ and Martinez concludes bad debts are expected to be $10\%$ of accounts receivable, what will Martinez

record as bad debt expense?

Bad debt expense $