Exercise 5-67 (Algorithmic) Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales Allowance for doubtful accounts, 1/1 (a credit balance) Accounts receivable, 1/1 Collections on account receivable Accounts receivable written off Bradford estimates that 2.9% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number) $547,900 8,740 42,340 489,770 14,250 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance Accounts receivable Allowance for doubtful accounts