Estimating Bad Debts Expense and Reporting of Receivables At December 31, 2013, Sunil Company had a balance of $600,000 in its accounts receivable and an unused (unadjusted year-end) balance of $6,720 in its allowance for uncollectible accounts. The company then aged its accounts as follows: The company has experienced losses as follows: 1% of current balances, 5% of balances 060 days past due, 15% of balances 61180 days past due, and 40% of balances over 180 days past due. The company continues to base its provision for credit losses on this aging analysis and percentages. a. What amount of bad debts expense does Sunil report on its 2013 income statement? $ b. Show how accounts receivable and the allowance for uncollectible accounts are reported in its December 31 , 2013 , balance sheet. The company has experienced losses as follows: 1% of current balances, 5% of balances 060 days past due, 15% of balances 61180 days past due, and 40% of balances over 180 days past due. The company continues to base its provision for credit losses on this aging analysis and percentages. a. What amount of bad debts expense does Sunil report on its 2013 income statement? b. Show how accounts receivable and the allowance for uncollectible accounts are reported in its December 31 , 2013 , balance sheet. c. Set up T-accounts for both Bad Debts Expense and for the Allowance for Uncollectible Accounts. Enter any unadjusted balances along with the dollar effects of the information described (including your results from parts a and b )