Estimating Bad Debts Expense and Reporting of Receivables (FSET) At December 31, Sunil Company had a balance of $562,500 in its accounts receivable and an unused balance of $6,300 in its allowance for uncollectible accounts. The company then aged its accounts as follows: Current 0-60 days past due $456,000 66,000 61-180 days past due 27,000 Over 180 days past due 13,500 Total accounts receivable $562,500 The company has experienced losses as follows: 1% of current balances, 5% of balances 0-60 days past due, 15% of balances 61-180 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 annual income statement? $ b. Show how accounts receivable and the allowance for uncollectible accounts are reported in its December 31 balance sheet. Note: Do not use negative signs with your answers. Balance Sheet (excerpt) Current Assets Accounts receivable Less: Allowance for uncollectible accounts Accounts receivable, net $ c. Report the increase in bad debt expense calculated in part a using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Balance Sheet Cash Noncash Transaction Asset + Assets Contra Assets Contributed Earned =Liabilities + Capital + Capital Revenues Recognize bad debts expense. Income Statement Net Expenses = Income